GEM NOMENCLATURE
The generalization of price-mediated exchange to include optimizing behavior in the workplace as well as the marketplace reveals a significant number of heretofore ignored fundamental laws that help govern modern, specialized economies. Uncovering and applying such laws not surprisingly requires a substantial set of new terms and symbols, which are organized below to provide easy reference.
Throughout this book, coherent macro theories that restrict rational exchange to the marketplace are named single-venue general equilibrium (SVGE), while those that permit generalized exchange are named two-venue general equilibrium (TVGE).
Throughout this book, coherent macro theories that restrict rational exchange to the marketplace are named single-venue general equilibrium (SVGE), while those that permit generalized exchange are named two-venue general equilibrium (TVGE).
Equivalent names for the former include dynamic stochastic general equilibrium (DSGE), dynamic stochastic general market equilibrium (DSGME), and New Neoclassical Synthesis (NNS); New Classical and Real Business Cycle (RBC) operate wholly within the SVGE model class. Other names for the TVGE theory include generalized-exchange modeling and the workplace-marketplace synthesis (WMS); coherent Keynesian theory requires the TVGE framework.
