A Final Summing-up

Abstract

Any economic model which has as its objective the proposing of methods for improving the quality of human life must explicitly recognise that any such recommendations will re-quire the substitution of more conscious social or political control (or modification) of existing human institutions relative to the manner in which these human creations currently operate. When the focus of an economic model is the betterment of the public weal via accumulation and growth, it is essential to recognise that monetary rules and institutions are an ultimate and integral part of the real economy. Accordingly, any growth theory which assumes that the monetary sector always passively accommodates to the real facts underlying growth and/or any growth model which ignores the peculiar role of money which exists only because of uncertainty is simply a myth. Such models may be logically impeccable within their own assumptions; they may even withstand pragmatic, Philistine econometric ‘tests’; nevertheless they will be hopelessly misleading if they are used to provide insights into the improvement of economic life via growth.