A Unified Theory of Capitalist Development (Enlarged and by Adolfo Figueroa

By Adolfo Figueroa

Centuries of monetary progress have proven that the capitalist method is
technologically very revolutionary; socially, besides the fact that, it's not so. Inequality is one among the
persistent good points of worldwide capitalism. Why does the capitalist method function in this
way?
The present paradigm in economics has made major development in explaining
capitalism; even though, there are a few proof that the paradigm can't clarify, because it will be
shown during this ebook. the present paradigm should be outlined because the ideas that are
contained within the college textbooks which are utilized in economics classes round the
world; therefore, its effect on public rules is big. these rules are
based on neoclassical and Keynesian monetary theories, one for the longer term and the
other for the quick run research of capitalism. either theories may be known as standard
economics during this book.
This publication provides a brand new fiscal thought of the capitalist procedure. This new
theory can be in a position to clarify the proof that normal financial may also clarify; yet it
will additionally clarify these evidence that ordinary economics cannot.
In order to introduce the reader to this new view steadily, the rules of
the new concept should be offered step-by-step during this creation. This advent may
then be obvious because the synopsis of a play concerning the nature of social relatives in a capitalist
society, to be able to then be built absolutely within the book.

Adolfo Figueroa, a Peruvian economist …has written a breathtakingly formidable book.
Physics continues to be suffering to combine in one unified idea the insights of general
relativity and quantum thought. Figueroa goals not just to construct partial versions able of
explaining assorted components of the capitalist process, but in addition a unified version from which
each of those targeted circumstances will be derived. The reader must be very
blinkered to not agree that Figueroa is directly to whatever vital. Figueroa merits to
be learn, and in a great global this publication could develop into required interpreting for economics
students in the course of the global.

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Additional info for A Unified Theory of Capitalist Development (Enlarged and Revised Edition)

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They are statistical regularities, that is, they are valid in the vast majority of countries, or in the average, but not necessarily in all countries. The remainder of the book will present theories that intend to explain these regularities. 2. It is shown there that the average income of the First World is much higher than that of the Third World with strong colonial legacy, whereas the Third World with weak colonial legacy lies in between. This result is just confirming our definitions: the richest countries are called First World and the poorest countries Third World, as an objective way of describing this ranking.

If in this confrontation theory and reality are inconsistent, theory fails, not reality; that is, the arbitrary selection of the set of assumptions is proved to be wrong. Thus the particular assumption responsible for the failure is not identifiable. Due to this problem of identification, a new theory could not be derived logically from the old one, but it would have to be invented, using a new set of assumptions. To understand a complex world the use of theory is a necessity. As shown above, theory is an abstraction of the real world, in which only some elements of the process are taken into account.

The second equation is the demand for real cash balances. The equilibrium condition is that the individual‘s cash balances are willingly held, that is, (Smi–Dmi)=0. As long as the exogenous variables remain fixed, workers will maintain the values of the endogenous variables constant period after period. This situation represents a static equilibrium. This equilibrium is (trivially) stable. Therefore, the method of comparative statics can be applied to derive beta propositions, that is, to determine the effect of exogenous variables upon endogenous variables.

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