Dynamic Macroeconomics of the Marketism


Dynamic Macroeconomics of the Marketism

Abstract

Market leaps prompt market development shifting the entropy that changes the market  value of the equity fluctuations (i.e. market value verses market lending interest rate ratios) still in to the right thus building up market value, whereas the equity of the entropy mostly balancing in the opposite direction of it. Therefore, these two market (i.e. economic) variances in theory should balance each other, whereas the lending interest rates and fiscal initiatives to different market sectors these targeted market sectors through deleveraging the equity by raising the lending rates and fiscal methods or leveraging by injecting liquidity through low rates lending, subsidies and fiscal stimulus, whereas the capital should be generated by quantitative easing for highly indebted developed markets (.i.e. economies). Conditional for properly functioning of such scheme is fluent market transmissionability of high market security.

Introduction

The principles of quantum factor apprehends the uncertainty of observation “Random variables, stochastic processes, and events: mathematical abstractions of nondeterministic events or measured quantities that may either be single occurrences or evolve over time in an apparently random fashion” economies) these processes are adjustable by using market (i.e. economic) tools more like parameters for either dispersing energy buildups or shifting these energies in different parametrical market (i.e. economic) sections; the “grey” grid/equity is already settled equity with higher percentage equitable power. Competition is the recommended market agent for market development (i.e. economic growth). This economic system accepts open marketplace demand and supply (instea of supply and demand) with externalities from the open global marketplace, which has its substantial effect mostly on the supply side. All the determents of this economic system is to be considered determined only in principle, whereas the market (i.e.economy) is considered in motion and change “panta rei”.in non linear (i.e. quantum) grid.

 

Market Equilibrium

The general market equilibrium is achievable by aggregating partial equilibriums-ceteris

paribus, of the market sectors (i.e. industries); monetary and fiscal policies should

target different sectors’ performance based on the sectors’ personal consumption

expenditures (PCE) inflation data using the Probability theory to either deleveraging

or leveraging these sectors to maximum efficiency, however market leaps should be

used to shift demand and supply to the right through targeted capital investment into

environmentally friendly efficient products and services, and related technologies. The

monetary and fiscal policies have been used to generally cool or boost markets (i.e.

economies) as a whole, however the powerful Discount Interest Rate hikes to cool

down the e.g. real estate overcapitalization that prompted the 2007-9 Recession would

not necessary be needed to e.g. manufacturing or communications which were not

overcapitalized at the time. The extreme lost of equity casual of the recession could

have been localized in the real estate overcapitalization and dealt through monetary and

fiscal means, moreover, not allowing the spill over that has materialized at the time.

Fluent transmissionability is necessary for a proper market functioning, whereas the

injected liquidity and fiscal stimulus effect would work into the markets to boost market

value. Such transmissionability is achievable by raising the market security under a

fair market competition. Monetary and fiscal stimulus should target fair equitability

benefiting small businesses and investors along with the large transnationals and

investors. (Konov 2013)

Exogenous Effect

The globalization, the rising productivity and technological advances in communications

and manufacturing, the China’s industrialization and intellectualization, etc have

established a global marketplace with excessive manufacturing capacity and well

developed means for distribution. Large transnational corporations have advanced

by utilizing on these new market conditions by moving and outsourcing through

having access to cheap public financing and injected by the central banks liquidity,

and marginalized labor market. Hence has aggregated exogenous macroeconomic

effect on developed and undeveloped markets (i.e. economies) alike, whereas the

beneficiaries are few markets and individuals: a widening gap between rich and

poor is in its progress, a market equilibrium imbalance, particularly on the demand

side, is becoming the most serious of issues. High unemployment, shrinking salaries,

underemployment, shrinking fiscal reserves, large national debt, diminishing middle

class, dysfunctional markets (i.e. economies), and etc are products of mostly exogenous

macroeconomic pressures coming out of these new global excessive overproduction

and the capacity for such. The system of trickle-down Capitalism with shady business

practices promotes monopolies and oligopolies on a global level; the low market (i.e.

economic) security prompts the wealth concentration and locks fair market competition

that becomes a liability to adequate market development (i.e. economic growth). To

absorb market shocks emulating from strong exogenous in a diminishing business

environment, employment, fiscal reserves, etc is achievable only by two approaches:

first, by more socialization and governmental involvement, or second, by marginalizing

all insufficiencies preventing a fair market competition and thus stirring more business

activities – entropy; in particular, empowering small and medium enterprises &

investors’ market participation.

General Equilibrium through Partial Equilibriums

The unevenness in developments of heterogeneous markets (i.e. economies):

a) National:

• e.g. more developed markets of New York and Chicago, or less developed

markets of Detroit and Cleveland,

• even further is divided into number of market areas leveraged by development

and profitability e.g. more developed Oakland County in Michigan and less

developed Wayne County;

• or market sectors e.g. more overcapitalized Real Estate (before 2007) and less

profitable small and medium size manufacturers.

b) Global: the developed markets (i.e. economies) and undeveloped such in an open

global marketplace.

Therefore, general equilibrium on a national level is greatly affected and related to

global equilibrium, whereas such general equilibrium could be only achieved by tracking

partial equilibriums of different market sections nationally and globally.

Leveraging or Deleveraging Markets’ (i.e. economies) Sectors

The unpredictable and fluctuating business entropy of individual market sectors could be

leveraged by monetary, fiscal stimulus approaches through market leaps or deleveraged

by rising lending interest rates and tightening fiscal policies.

Joshua Ioji Konov, 2013

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