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Situational analysis

Science is a trial-and-error process: ignorance is the starting point, great insights are few and far between. Economics is a failed science. The awkward mixture of theoretical and political economics has not produced satisfactory results with regard to material and logical consistency. Hence theoretical economics has to be extricated from political economics and reconstructed upon objective foundations. Advanced theory, i.e. assertions beyond the informative description of various subfields, is largely vacuous. Description, unsubstantiated modeling, psychologism, biologism, physicalism, sheer toolism, plain observationism, myopic empiricism, historicism, exegesis, rhetoric, or metaphor do not make a consistent and empirically valid theory. Orthodoxy cannot give a theoretical account of how the actual economy works, neither can Heterodoxy. Practitioners and down-to-earth empiricists cannot see beyond their noses. Within the accustomed conceptual frameworks, real progress is impossible. The situation calls for a new Paradigm. The new Paradigm calls for objective formal foundations. In the most general terms, the economics Paradigm Shift consists of switching from the behavior-centric bottom-up approach to the structure-centric top-down approach. This is comparable to the Copernican turn from geo-centrism to helio-centrism.


AXEC's mission is

  • to explain how the monetary economy works,

  • to elaborate the logical and material implications of the structural-systemic axiom set,

  • to identify the errors/mistakes in orthodox and heterodox approaches,

  • to communicate research results in the form of working papers that are freely accessible on SSRN,

  • to provide an AXECwiki knowledge platform,

  • to encourage independent testing of AXEC theorems,

  • to integrate viable pieces of existing theories into the overarching macro-axiomatic Paradigm,

  • to sharpen the demarcation between science/nonscience in economics and to bring forward science,

  • to protect the intellectual property rights of all contributors to the AXEC Project,

  • to accomplish the first complete Paradigm Shift on the web.



AXEC Project

Egmont Kakarot-Handtke

Hohenzollernstraße 11

80801 München



M +491792494356

F  +4932123491280



Application of the AXEC® set​​​​​​​​​​​​​​

Personal Lecture, request details​​


Consulting, request details​​


AXEC® Registered Trademark

DPMA 30 2013 010 955

HRA 90422

Handelsregister München

"The procedure of the axiomatic method, as it is expressed here, amounts to a deepening of the foundations of the individual domains of knowledge — a deepening that is necessary for every edifice that one wishes to expand and to build higher while preserving its stability."



The pure consumption economy

"... if we wish to place economic science upon a solid basis, we must make it completely independent of psychological assumptions and philosophical hypotheses."



Economists owe the world the true economic theory, that is, a theory that satisfies the scientific standards of material and formal consistency.

... browse the AXEC working papers on SSRN

The logical interface between objective macrofoundations and subjective valuations 2022

Stop Recycling Dead Economic Theories, Start the Paradigm Shift 2020


How the Intelligent Non-Economist can Refute Every Economist Hands Down 2015


Major Defects of the Market Economy 2015


Essentials of Constructive Heterodoxy: Financial Markets 2015


Essentials of Constructive Heterodoxy: Behavior 2015


Essentials of Constructive Heterodoxy: Institutions 2015


Essentials of Constructive Heterodoxy: Employment 2015


Essentials of Constructive Heterodoxy: Profit 2015


Essentials of Constructive Heterodoxy: Money, Credit, Interest 2015


Essentials of Constructive Heterodoxy: Aggregate Demand 2015


Essentials of Constructive Heterodoxy: Say's Law 2015


Essentials of Constructive Heterodoxy: The Market 2015


Onblog Economics Muddle Busting 2014


Economics for Economists 2014


The Profit Theory is False Since Adam Smith. What About the True Distribution Theory? 2014


The Synthesis of Economic Law, Evolution, and History 2014


The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment 2014


The Law of Supply and Demand: Here it is Finally 2014


Towards Full Employment Through Applied Algebra and Counter-Intuitive Behavior 2014


Objective Principles of Economics 2014


Profit for Marxists 2014


The Truly General Theory of Employment: How Keynes Could Have Succeeded 2014


The Logic of Value and the Value of Logic 2014


Mr. Keynes, Prof. Krugman, IS-LM, and the End of Economics as We Know It 2014


Loanable Funds vs. Endogenous Money: Krugman is Wrong, Keen is Right 2014


Exchange in the Monetary Economy 2014


Mathematical Proof of the Breakdown of Capitalism 2014


Say's Law: A Rigorous Restatement 2013


Debunking Squared 2013


The Ideal Economy: A Prototype 2013


Redemption and Depression 2013


The Structural Price Mechanism 2013


Understanding Profit and the Markets: The Canonical Model 2013


How to Get Rid of Supply-Demand-Equilibrium 2013


Toolism! A Critique of Econophysics 2013


The Calculating Auctioneer, Enlightened Wage Setters, and the Fingers of the Invisible Hand 2013


Walras's Law of Markets as Special Case of the General Period Core Theorem 2013


Settling the Theory of Saving 2013


Confused Confusers: How to Stop Thinking Like an Economist and Start Thinking Like a Scientist 2013


Intertwined Real and Monetary Stochastic Business Cycles 2012


Make a Bubble, Take a Free Lunch, Break a Bank 2012


Keynes's Employment Function and the Gratuitous Phillips Curve Disaster 2012


The Common Error of Common Sense: An Essential Rectification of the Accounting Approach 2012


General Formal Foundations of the Virtuous Deficit-Profit Symmetry and the Vicious Debt Deflation 2012


Crisis and Methodology: Some Heterodox Misunderstandings 2012


Geometrical Exposition of Structural Axiomatic Economics (I): Fundamentals 2012


The Rhetoric of Failure: A Hyper-Dialog About Method in Economics and How to Get Things Going 2012


Zur axiomatische Einheit von Kreislauf-, Geld-, Preis- und Verteilungstheorie 2012


Income Distribution, Profit, and Real Shares 2012


Taxes, Profits, and Employment: A Structural Axiomatic Analysis 2012


The Emergence of Profit and Interest in the Monetary Circuit 2011


Trade, Productivity, Income, and Profit: The Comparative Advantage of Structural Axiomatic Analysis 2011


Why Post Keynesianism is Not Yet a Science 2011


The Value of Water and Diamonds: Back to Square One 2011


Matter Matters: Productivity, Resources, and Prices 2011


The Propensity Function as General Formalization of Economic Man/Woman 2011


The Wine Maker's Business and the Origin of Interest in a Monetary Economy 2011


When Ricardo Saw Profit, He Called it Rent: On the Vice of Parochial Realism 2011


Geometrical Exposition of Structural Axiomatic Economics (II): Qualitative and Temporal Aggregation 2011


Increasing Returns and Stability 2011


Primary and Secondary Markets 2011


Squaring the Investment Cycle 2011


Uniform Profit Ratios 2011


Reconstructing the Quantity Theory (II) 2011


Reconstructing the Quantity Theory (I) 2011


Unemployment Out of Nowhere 2011


Exploitation and Its Unintended Outcomes. An Axiomatic View of Marx's Surplus Value. 2011


Properties of an Economy Without Human Beings 2011


The Coherency of Money, Profit, Price, and Distribution 2011


Beginning, Crises, and End of the Money Economy 2011


What is Wrong With Heterodox Economics? Kalecki's Profit Theory as an Example 2011


Schumpeter and the Essence of Profit 2011


Keynes's Missing Axioms 2011


The Pure Logic of Value, Profit, Interest 2011


Scrap the Lot and Start Again 2011




Alternative access 


SSRN              current updating, latest revisions of working papers, direct downloads

MPRA             documentation, first versions of working papers, direct downloads

ECONBIZ       third party documentation, partly references and partly indirect downloads

COMMONS    equations, theorems, laws, graphics


Proceed...                                                                                                         up

"What particular reality is described by a given theory can be ascertained only from that theory's axiomatic foundation."



"I find it quite amazing that it is possible to predict what will happen by mathematics, which is simply following rules which really have nothing to do with what is going on in the original thing."



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