Macroeconomics as Systems Theory: Transcending the Micro-Macro Dichotomy

This book examines macroeconomic theory from an analytical framework provided by theories of complex systems, which treats the micro-macro relation as one of parts-to-whole and approaches it from within an ecological scheme of thought. The social-theoretic approach treats the standard macro variables as having been shaped through social institutions, conventions, and processes generated through interaction among economizing persons, making the macro object more complex than the micro object.

Format: Paperback / softback
Length: 313 pages
Publication date: 03 May 2021
Publisher: Springer Nature Switzerland AG

This book delves into the realm of macroeconomic theory, offering a fresh perspective by integrating complex systems theories into its analysis. In contrast to conventional theories that rely on aggregation, this approach presents a profound difference in analytical viewpoints. Rather than seeking to understand society through the aggregation of micro entities, it emphasizes the interconnectedness of the macro and micro levels, treating the micro-macro relationship as a vital component within an ecological framework of thought.

A society can be likened to a intricate and dynamic ecosystem composed of various plans and strategies. However, it is crucial to recognize that society is not reducible to a singular plan. Conventional macro theory portrays the national economy as a aggregation of variables such as output, employment, investment, and a price level, aiming to establish theoretical relationships among these variables.

In contrast, the social-theoretic approach to macro or social theory presented in this book takes a different tack. It treats the standard macro variables as having been shaped through social institutions, conventions, and processes that emerge through the interaction of economizing individuals. The object referred to as "macro" possesses a higher order of complexity compared to the object referred to as "micro."

By adopting a complex systems approach, this book provides a deeper understanding of the intricate dynamics that shape macroeconomic outcomes. It sheds light on the role of social institutions, conventions, and individual behavior in shaping economic policies, market structures, and overall societal dynamics. The book offers valuable insights for policymakers, economists, and scholars interested in exploring the complex interplay between the macro and micro levels of society.

Weight: 454g
Dimension: 210 x 148 (mm)
ISBN-13: 9783030444679
Edition number: 1st ed. 2020