HINGE
The diagram Fig. 14-1 (p. 55) presents the circulation of payments but not the circulation of goods and services. This diagram therefore is not the whole "hinge" (p. xv) but only half the hinge. The other and more important half is Fig. 27-1 (p. 150).
The purpose of Fig. 14-1 is to produce the ratio (w) of the surplus income (I") to the total income (I"+I') in Fig. 27-1, where w is shown in relation to the accelerations of the productive process.
MD-ECA is concerned about showing "(1) that the acceleration of the productive process postulates modifications in the [monetary] circulation" (p. 5).
The modifications postulated are the steps that constitute the transformation of the "business cycle" ( with booms and slumps) into a "pure cycle" (all booms and no slumps). They are part of the complex process of "augmenting the enlightenment of the enlightened self-interest that guides exchanges." (p. 6)
But the U.S. Federal Reserve board says that "it is futile to instruct the unskilled in what their interests should be" in addressing bankers and economists on Friday, Aug. 25, 2000 (according to Richard Stevenson of the N.Y. Times News Service).
Who are the "unskilled" and what are their actual "interests"? The unskilled are said to be the work-force with "low job skills and educational levels" and their "interests" surely include retaining their jobs. These can also be said of bankers and economists UNSKILLED in the terms and theorems of MD-ECA. They may not lose their jobs when the macroeconomy goes into a slump, but they will surely lose their jobs if the slump turns into a global crash.
Can "instructing the unskilled" be facilitated by computer simulation that translates mathematical processes into animated graphics?
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