4.4 way of proceeding

This manual is based on the original texts. By original texts, we mean the texts every modern textbook on economics is based on. Modern textbooks on economics are a reduction of economic thinking to arbirtraly canonised concepts. There is a certain evidence that the canonisation of a concept depends on the possibility to be mathematically modelled, see mathematical modeling.

The original authors have a much broader view on economics and comprise a wider range of topics, and their methodological approach is different. The original texts are therefore better suited to get an insight into economic thinking than any textbook on economics used at the academic level.

Public debate is about the area of tension between a market economy and governmental intervention. This is actually the fundamental question. To discuss this topic in a meaningful way it should be understood what is a free market economy and what is keynesianism. There are a lot of misunderstanding concerning these terms.

We think that a chronological presentation of economic systems allows a better understanding than any modern textbook. In the public discussion market economy, neoclassic theory, capitalism and neoliberalism have become synonyms, although they describe different things. If the terms used in public discussion are not clear, a meaningful discussion is not possible. Keynesianism at the other side is reduced to public spending. That is not useful neither.

We start therefore, from the beginning, and we end with Keynesianism. Then we have an idea of the area of tension. There will be no easy answers to any problem of the globe, but we get a useful framework, within economic issues should be discussed.

As we already said, there is nothing complicated in this manual. Economic theory is simple, see Is economics complicated?

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