Carl Menger’s revisited theory of capital in opposition to the Classical and Marginalist scholars’

Among several contributions, Carl Menger proposed a division of economic goods in orders. This sets the foundations for the Austrian capital theory, usually maintained as a complex of higher orders goods in a production process. Curiously, Menger dismissed this concept of capital, in favor of one used in common parlance. This change of view is often overlooked, but represents a turning point in the field of capital theory. This paper assesses how Menger's popular notion of capital differs from the scientific one. To achieve this goal, we investigate the concept of capital in Classical and Marginalist economists. One of the implications is that the popular concept is related to the theory of capitalism. Capital, as used in business language for economic calculations, is better suited for analyzing the capitalist system, as it captures the usage in monetary economies and business accounting.

PREDICTORS THAT LEADS TO SOCIO ECONOMIC SUCCESS OF LOCAL COMMUNITIES

In Malaysia, the infusion of private and public sectors has attributed to the nation’s socio-economic development as strengthen by the need to address the demands and challenges of the local community. These efforts will more likely provide several important ideas that would suffice related and relevant literatures, which will be used to develop a better socio-economic growth in Malaysia. In an economic sense, development entails the transformation of simple subsistence economies into complex monetary economies. In the process, an increase in the proportion of products that are sold or exchanged and a decline in the proportion of consumption may take place concurrently. The purpose of this study is to examine the socio-economic demands and gaps of the local population and to suggest assistance and interventions required. The overall results of this study reveal the challenges faced at the community level in the District of Kuala Lipis in the context of social and economy. This study was carried out via a structured survey throughout the district involving 300 respondents and also complemented with a face-to-face interview carried out with key stakeholders. The study findings were also supported with secondary data compilation of journals, articles and speeches.

Poetry & Money

Poetry & Money: A Speculation is a study of relationships between poets, poetry, and money from Chaucer to contemporary times. It begins by showing how trust is essential to the creation of value in human exchange, and how money can, depending on conditions, both enable and disable such trustfully collaborative generations of value. Drawing upon a vast range of poetry for its exemplifications, the book includes studies of poetic hardship, religious verse and debt redeeming, the South Sea Bubble and the financial revolution, debates upon metallic and paper currency in the eighteenth and nineteenth centuries, as well as modernist struggles with the gold standard, depression, inflation, and the realised groundlessness of exchange value. With its practitioner’s attention to the minutiae of poetic technique, it considers analogies between words and coins, and between poetic rhythm and the circulation of currencies in an economy. Through its close readings of poems over many centuries directly or indirectly engaged with money, it proposes ways in which, while we cannot escape monetary economies, we can resist, to some extent, being ensnared and diminished by them – through a fresh understanding of values money may serve to enable, ones which are nevertheless beyond price.

Introduction to Dynamic Macroeconomics

This chapter offers an introduction to the methods and main models used in dynamic macroeconomics. After reviewing key concepts such as lifetime utility maximization and the period-by-period and intertemporal budget constraints, first-order conditions for intertemporal optimization (the Euler equation and the labour-leisure choice) are developed. These methods are applied in developing the workhorse Ramsey model, with discussion of related concepts such as dynamic efficiency and market equilibrium versus the command optimum. An extension of the Ramsey model incorporates adjustment costs in investment and develops the user cost of capital. Furthermore, the Sidrauski model, with its implications for monetary economies, is reviewed. Finally, the discussion turns to another workhorse dynamic model, the overlapping-generations model and its implications. As an application of this model, the properties of various methods of funding social insurance are discussed.

MONEY AND CREDIT REMIX

Money and credit are ubiquitous in actual economies, but there is an active theoretical debate on whether they are both necessary if they can both be used in all transactions. Recently, Gu et al. (2016) have shown that money and credit cannot be simultaneously essential and debt limits do not matter for the determination of real allocations in a class of monetary economies. In this paper, we revisit their irrelevance result in a monetary economy based on Lagos and Wright (2005), which exhibits a misallocation of liquidity that is common in search models of money. We show that monetary loans, which naturally require the use of both money and credit, implement Pareto superior allocations in which the size of debt limits matters.