To further open my argument for support; because it a kind of thinking bordering my mind on whether there will ever be a monetary policy addressing employment as the objective of Central Banks. In my perspective currency market as a commodity is a component of capitalistic systemic framework, which undermine labour as a property.

Therefore seeking to know whether they could be a time of a high developed financial market correlating to high rise in job employment as modern macroeconomics seek to deduce such perfect relationship

Okun's Law state; wherever there is a percentage rise in employment cause 2% fall in GDP.  Then, could unemployment be solved in structural developing economy?

it is false that "wherever there is a percentage rise in employment cause 2% fall in GDP"

the Okun's law states : that for every 1% increase in the unemployment rate, a country's GDP will be roughly an additional 2% lower than its potential GDP.

but this is a right question!

when central banks ride an expansionary monetary policy, the desire and then the price of the productive means like labor rise . this is the Philips-curve. but only in the short-term.

if the real sector with innovations and productivity was able to compensate the created money with commodities, we solve the whole problems like unemployment . if not, we would stick in stagflation. the last scenario is common in developing country.

in a stagflatinary situations, because of the sustaining interest on the money market , some insubstantial phenomena like time and informations absorb the labor's wages or values.

I wish it would be helpful

Thanks for the correction to the misquoting of the law, typo error- "unemployment". However the debate argued hardly depend solely on Okun's law.  However you raised a substantial argument which if i understood you well 1. Money market innovatively employed will solve unemployment  2. Unable to solve unemployment currently due to stagflationary situations, as a result affect labour wages and value due to time and information investment ? @Ali

Ali Haeri, per your reference to Philips-curve, you assert that when the central banks ride on expansionary money policy, the desire and the price of productivity means labour rise. Has it been theoretically correct in the material market of observation?

Let examine the above assertion again, what about the real sector economy innovation, thriving on technological advancement for productivity efficiency and speed, a means to sustain interest in money market plus profit, will unemployment circumstance be solved...................Case 1

Critically analyzing your last note of stagflation effect on labour wages and value almost concur with the above "post" hence your deduction as False seems to contradict  or?

@Ali, finally it seems to me, my first post as a subject of discuss is slightly misunderstood, whether it need a re-frame of text.  My argument is money assumed as a commodity of exchange; in this case examining the security market effect on macro-economy, specifically on employment.

Hi Emmanuel, would you mind re-phrasing your question?

Thanks,

-Steve

Thanks will do so....

Dear Prof. Senzu,

                                I have done some research in Econophysically (Quantitative Financially) relating Electronic Stock Exchange statistics to Macroeconomic Growth and thereby implicitly to unemployment rates (by possible extension). This question if one seriously studies the market microstructure including the velocity with which information and stock market returns circulate through electronic networks over spacextime (Mallick (1993), Mallick (2012, 2014, 2015), Mallick, Hamburger, Mallick (2016, 2017)), as is being done now, creates new kinds of differentiability problems in integrating stock market system results. This as we have discovered is the fundamental question in integrating stock market systems in overall market systems and therefore the statistical properties of GNP Dynamics like Optimal Growth and therefore by extension to unemployment rates. In any case by using Walrasian markets you cannot solve for  capital markets, goods markets and labour markets equilibrium simultaneously, you have to solve for them sequentially and sequential equilibrium requires reservoirs and networks of various kinds. So that is some input we can add.

Soumitra K. Mallick

for Soumitra K. Mallick, Nick Hamburger, Sandipan Mallick

Thanks Sir, i think there is that desire to  collaborate with you on a project of this nature in developing economy (Africa). Security market growth and  efficiency is still in it developmental stage in Africa and It has all this great examples and case studies to fall a victim to  old mistakes of our predecessors. Which i have developed an unquenchable  passion to drive that pioneering agenda and definitely need your expert support possible on an intellectual grounds for the applied industry @ Prof. Soumitra K. Mallick,  not excluding other learned fellows in this area of specialty, they  are all welcome on board.

Will keep your above reference note for further studies. Wish you will send me your paper on such findings to [email protected] and will be forever grateful

You can read our research papers at www.researchgate.net/Soumitra K. Mallick.

Soumitra K. Mallick

for Soumitra K. Mallick, Nick Hamburger, Sandipan Mallick

OK,  Thanks

Dear Prof. Mallick

You have a great and innovatively designed paper.  i almost spent my entire day to extensively read to understand the paper, even though i lack an advanced bar-ground in Physics mathematics. But i have some few questions to ask in correlation to my above post, analyzing from your response and referred paper read***.

Q1. If per Walrasia market model, capital and labour market has to be solved sequentially, then logically we could not establish correlation between both variables stated above as a result of complex network involved , which per this theory implies every macroeconomic theory  propounded since 70s up to date has to be classified as garbage or?

Q2. Your theoretical derivation if i best understood, define how information is processed for fundamental analytical actions in the security market.  Despite the paper interest in the micro-economic analytico-dynamics exposed by building on Arrow-Debreu economy model, i foresee causality relationship, meaning (mechanical processing of information) by humans beings towards the security market; which in the applied theory of human behavioral actions and effect in the capital market on forex, commodity and stock trading, cast negative weight on the theory to some extent

*Note: Have no clue on the trading dynamics of Indian Stock market but assume, it may have some level of market efficiency comparable to the global standard of stock market performance efficiency,  which setup the bases of my response at Q2* by assuming that  all human encode information at the same rate, which is unrealistic in the material market.

Q3. I foresee that, if the above question of capital market and employment economic-relationship not proven theoretically, the  hope of central bank using monetary policy to stimulate economic growth and employment will continue to fall into the economic equation of fallacy, more in abstract theoretics than applied science

In response to all your questions which require long responsesa if elaborated upon I want to add that all my research is based on the various equilibria obtained with various probabilities in bounded rational dynamic state preference theory models (basis for asset markets equilibrium a la Arrow Debreu and Radner Polemarchakis Geanokoplos Wilson Theory) in my PhD thesis at NYU Mallick (1993) and then subsequently developed especially with respect to spacextime flow and stock Archimedean Higgs Englert Bosonic dynamics. It is very exciting to us that real stock market data from post globalisation regime open Indian Stock Markets fit these results so well and give rise to a new calculus which is purely from applications orientation. Now in all this research one has to assume full employment or fully efficient markets systems both at the aggregate as well as individual level. So that is what we have done.

Soumitra K. Mallick

for Soumitra K. Mallick, Nick Hamburger, Sandipan Mallick