Theory of Economic Time (TET)
by Carlos Bondone

ECOMONIC THEORY

CENTRAL CONCEPTS of the Theory of Economic Time (TET)

In this section, we present a brief summary of the central concepts and the basic structure of the TET, as well as the current theories that are losing scientific consistency.

It is necessary to refer to the concepts presented below since many of them are new and others acquire more precision. Puritanism is essential in economics as a science; the fact of not having understood it like that has led to mistaken theoretical developments. Let’s see now some of the concepts that the TET presents as an introductory summary.

INDEX CONCEPTS

• Fallible man
• Necessity
• Scarcity (E)
• Human action
• Purpose of the human action
• Utility of the human action
• Means for the purposes of the human action
• Thing
• Good
• Economic good (EG)
• Possession of economic goods
• Property of economic goods
• Ordinal valuation of economic goods
• Value of economic goods
• Quantity of economic goods
• Marginal utility of economic goods
• Wealth (W)
• Rent (y)
• Saving (S) “Dispensable term”
• Present economic good
• Future economic good
• Offer (O)
• Demand (D)
• Axiom of demand (AD)
• Axiom of scarcity (E = D - O  > 0)
• Axiom of the biunivocal relation “economic good-owner” (BE-P)
• Equation of total wealth versus Y = C + I
• Theorem of permanent disequilibrium (S ≠ I)
• Economic Time
  Special relativity of the economic time (indirect or improper materialization)
  Permanent scarcity of the economic time (i > 0)
  Necessary participation of the economic time (necessary factor of production)
  
• Interest (i)
  Interest as the price of currency (money)
  Indirect materialization of interest
  Theory of temporal preference
  Existence of interest
  Theoretical causalities derived from interest
  Permanent positivity of interest
  Approach of the value or physical productivity
  Bhöm-Bawerk, Fetter and Hausmann approach
  Summary
• Necessary participation of interest
• Currency interest (i_m)
• Credit
  Regular credit
  Irregular credit
• Price of credit
• Liquidity
• Currency
  Menger and the TET
  Mises’ regression theorem
  Currency as an owner’s stock
  Interest as the price of currency (money)
  Currency and money
  Purchasing power of currency (money)
  Currency, prices and interest
• Currency-money
• Currency-credit
• Axiom of equivalence i_m ≡  p_m
• Origin of currency
• Axiom of exchange
• Types of exchanges
• Inter personal exchanges
• Origin of the inter-personal exchanges, causality of currency
• Price (p)
• Axiom “economic good-price”
• Axiom of the positivity of prices
• Currency price (p_m)
• Consequences of the necessary participation of the interest in the formation of all the prices
• Current value and the equation of bonds
• Coordination of the economic information (simultaneously imperfect, disperse and scarce)
• Credit to the financial system (bank)
  100 % - banking reserve
  Banking fractional-reserve
• Central Bank
• Theory of economic cycles
  Trap of liquidity
  According to current theories
  According to the TET
  Comparative system
  Summary
• Theory of distribution
• Summary of the economic thought