This book links the philosophical perception of time and Einstein's theory of special relativity to economic processes, showing that the phenomena of time dilation and length contraction seen in physics can be identified within - and adapted to - an economic framework. The author expands on Marx's model of reproduction with the additional variable of time, which is represented as a relative or functional category. In addition to allowing a more precise understanding of both static and dynamic relations between economic systems, this concept examines approaches to time proposed by Smith, Marshall and Keynes, and challenges the equilibrium and disequilibrium economic models. Rohatinski suggests that by understanding the differences in economic activity perceived across different time periods we are better able to influence that activity at micro- and macroeconomic levels.
Zeljko Rohatinski is a Croatian macroeconomist and former Croatian National Bank Governor. He has worked in government administration, commercial banking, economic institutes and the corporate sector. In 2008, Rohatinski was named 'The Best Central Bank Governor in the World' and 'The Best Central Bank Governor in Europe' by The Financial Times-owned The Banker magazine.
Chapter 1. Introduction.
Part I. The Functional Time Hypothesis.
Chapter 2. Time as an Objective Category.Chapter 3. Time as a Subjective Category.
Part II. The Structure and Character of Economic Activity.
Chapter 4. Historical Character.Chapter 5. Circular Character.Chapter 6. Components and Course.Chapter 7. Causal Relations.Chapter 8. Structural Relations.Chapter 9. Equilibrium Relations.Chapter 10. Modelling Economic Activity.
Part III. Economic Activity in Time and the Character of Functional Time.
Chapter 11. Functional Time.Chapter 12. The Relative Character of Functional Time.Chapter 13. The Time Determination of Economic Activity.Chapter 14. Concluding Remarks.
1. Transformation problem
2. Conditions for moderate growth in a two-sector economy
3. Conditions for normal reproduction in a two-sector economy
4. Conditions for equilibrium of a two-sector economy in functional time