The core theoretical principle established is that genuine economic systems must be modeled as dynamic entities governed by differential equations rather than static equilibrium states or neoclassical agent-based utility maximization. Within the domain of financial macroeconomics, this framework posits that money creation and monetary circulation are intrinsic to causal relationships between system components (firms, banks) described through double-entry bookkeeping logic applied over continuous time. The theory asserts that true dynamics require modeling out-of-equilibrium feedback loops where variables depend on their own rates of change, thereby invalidating conventional partial/general equilibrium approaches that treat economic transitions as instantaneously stable states.
The core theoretical principle established is that genuine economic systems must be modeled as dynamic entities governed by differential equations rather than static equilibrium states or neoclassica…