My interest in economics started with the puzzle of stimulus theory. The assumptions in and out seemed to be different models, models with different norms. The New,Old and Recent Keynesians seemed to assume DSGE, then predict results from Trading theory. Hard to make the switch.
Trading theory can best be thought of as a finite dimensional portfolio, or ship, which is filled by executing probabilistic trades with finite time service times. Think of military logistics as an extreme form. On the other hand, DSGE theory is best thought of as rental periods which must be filled. It is an economy where everyone rents everything.
Now, my new stimulus theory says the economy (or market) is stuck in a DSGE model, no one wants to make purchases, preferring to rent. The monopoly player wants to return to a trade flow model. In this dual normed model, the monopoly player in the market, the hegemon, asserts itself as anchor element in the proposed portfolio, it gets the largest portion of the proposed finite container. That monopoly play sets the portfolio standard. If the new portfolio structure yields gains, other market players accept their position in the portfolio.
This model makes sense across sectors and countries, with or without fiat money, using or not using government.
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