Premises and an Overview
As this book is rather sweeping in purview, it is appropriate to begin with a brief discussion of the premises which motivate and guide the analyses, together with an overview of the discussion to follow. The overarching concept in the book is that of myros (or what I will eventually rename as fluid capital). Myros is viewed as a fund (or equivalently a surplus), which comes into existence through saving out of current production and is extinguished through consumption, current production, and investment. Myros funds investment, current production, and consumption in excess of current income. Additionally, myros enables assets to acquire value, provides for both the existence and value of money, and is coextensive with the economic wealth of an economy. Myros is fundamental to the understanding of the macroeconomics of an economy, and what few macroeconomic laws that can be identified exist as consequences of the conservation laws, which myros imposes. Indeed, most of the analysis of the book can be viewed as a working through of the implications of these conservation laws.
KeywordsMonetary Policy Current Production Current Income Money Stock Economic Wealth
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