Conventional economic theory treats the role of money as neutral (it does not affect the subjects it measures in terms of value. This is unscientific and very confused.
Marginal Factor Costs are "...expressed in currency units per units of input..." (wikipedia). This assumes that money is a "measuring rod" that is fixed (neutral/inert). Yet we should know that:
who creates the currency (that is, credit-money), who owns newly issued currency, how it gets into the economy (lent or spent), how much of it is created and/or transferred to foreign jurisdictions (invested abroad);
all these variables influence intimately how the monetary measure behaves.
This Society is dedicated to individuals with an interest in economics, finance, socio-politics and financial reform, with the objective to provide a friendly and open environment to express views and develop new ideas in the process. So if questions like these -
Should the central bank alone control all money supply?
Should the IMF/World Bank be abolished?
Should the stock market exist?
For how long can we sustain this oil-fuelled growth?
How relevant is Keynesian/Chicago consensus today?
How to deal with the rise of China?
- etc, concern you, then come join us for a frank debate, every month! This group is an attempt to understand the current economic system, its pluses and minuses and how best can it be reformed. There are no preconceived ideas for this 'new economic order', just a desire to engage. Come let’s talk!