C. Rational money system and market measurement.
Chapter 8. Mercometrics and mercologics.
- This chapter's goals.
- Present economics as an experimental science.
- Conceptualization and delimitation of the subject being studied.
- Experimental confirmation.
- Statistic and statistics.
1. This chapter's goals.
The suggested monetary reform has very important consequences from the
point of view of a scientific knowledge of the market.
In this chapter we will see how it is possible to definetly transform
the monetary market in «a subject of scientific study» through
the use of telematic cheque invoices as the only legal monetary
2. Present economics as an experimental science.
The scientific character of what today we call economics is certainly
very debatable. Economists themselves have not been able to agree if economics
is to be considered a scientific matter.
Positions are diverse; but the fundamental question is the principle
chosen to establish what is science and what is not. On the one hand, those
who apply a rigorous criterion, who consider that scientific matters must
be submitted to a severe experimental treatment, admit that economics in
the present situation is not at all scientific. On the other hand, those
who have broader views say that economics is a science.
From a strict point of view, which is the one defended here, science
can be defined as the empiric-phenomenologic pro-experimental knowledge.
This mean that all scientific matter implies at least that following conditions
should be fulfilled:
qualitative observation of the phenomena being studied;
analytic separation of pervalences (privileged values) in the phenomena
quantification and calculation of such privileged values;
preparation of work hypotheses, as a consequence of the results obtained
in the previous analysis and calculations;
experimental comparison of the hypotheses: new real facts must prove the
validity or invalidity of the proposed hypotheses to explain the empirical
If we follow this principle, the first problem to be solved is why economics
is not a scientific matter.
This problem of course is to be situated in a wider context of the scientificity
of «social sciences» (as it was already said in the introduction.
The two main reasons of the present lack of scientific rigour in this field
are the two following facts:
the filtered ideology, which takes advantage of the lack of precision and
semantic singleness, produces confusion and misunderstandings, insoluble
discrepancies between ideas without any empirical basis, and drives down
the lack of exact and trustworthy measuring instruments forbids the experimental
comparison of the hypotheses and models worked out for the explanation
of the phenomena.
In the following pages we will explain how this situation can be overcome.
3. Conceptualization and delimitation of the subject
«Economics» includes at present a group of approximate notions
and of little studied hypotheses, without any rigorous scientific definition
to unite them, and without a duly limited field of application.
The division of economics in several different branches, besides their
relative importance, is a clearly ideologic matter, since it changes according
to different authors and different schools. The same is applicable to the
definition of elemental ideas.
To face this situation, we must define exactly and without a possibility
of doubt, some basic ideas of a purely phenomenic range, without using
ideologies which mix up phenomena with ideals. This is what we have tried
to do in the first chapter of this essay. As
we have seen, we mention there utilitarianism instead of «economics»,
meaning a «system for the production and distribution of utilitarian
goods in the frame of a community whatsoever», and instead of dealing
with an «economic» matter, we deal with utilitarian anthropobiophysics.
In the case of the utilitarian systems in force in the «civilised
world», anthropobiophysics is limited to mercologics, and more specifically
to «monetary mercologics», since such systems are characterized
by the presence of a market conditioned by a money system.
Therefore, the subject of the mercologic science are the monetary
markets, defined as «an ensemble of elemental money exchanges
in a given time-space». Around this central phenomenic axis can take
place the many specialized branches -sectorial, applied, institutional,
macro/micro -mercantile, etc- of the matter at study.
With respect to the word «economics», which has so many
meanings, here it is used especially to define a given strategy of market
equilibrium, in accordance with its original meaning, that is a mercantile
technology which will be dealt with in chapters
10 and 12.
4. Experimental confirmation.
The other condition necessary to any matter which aspires to be a science,
is the experimental confirmation of the expressed hypotheses.
In spite of its high theoretical value, a deductivist pure reasoning
-as that which has been in use for a long time and still is in mercologics-
can only produce fully arbitrary explanations, if there is not an exhaustive
and permanent contact with the reality of the actual phenomena it is trying
On the contrary, every matter which wants to obtain effective results
and not purely speculative ones, must be realist, that is it must make
reference to actual phenomena easy to observe and evaluate in their elements.
The applied ideas must be operative, that is they must be easy to identify
with the phenomenic reality.
Besides this matter must be able to find out if its principles correspond
to actual facts: it must go back to the «battlefield» of the
phenomena from where it started, to overcome experimental confirmation.
If all the above is applied to our field of study -the monetary market-
we can immediately confirm that the telematic cheque invoice is at present
a necessary element to make mercologics an experimental scientific matter.
As a matter of fact the money system is, as we said before, the metric
system of the market. Only with an exact metric system is it possible to
and evaluate the elemental phenomena for the experimental confirmation
of any given hypothesis. Thanks to the telematic cheque invoice, the elemental
market phenomena (the elemental monetary changes) can be exactly measured
and documented, introducing therefore a real mercometrics, which is the
necessary basis of any further experimental mercologics.
5. Statistic and statistics.
Many of the models produced to-day by economists on the market or on
real trends of utilitarian life, have a quantitative form. But the lack
of an adequate metric system makes their experimental confirmation impossible,
therefore these models remain a simple theory.
One of the most usual instruments in present day mercologic investigation
is made up by statistics1.
Statistics is a mathematic science which allows to deduct, with a given
probability degree, the value of some parameters considered in a population,
starting from the deep knowledge of parameters in a reduced chosen sample
of this population. Therefore statistics allows to apply sample-data to
population data, within a chosen degree of probability.
Statistics are used with very good results in many sciences. But in
mercologics a problem appears which must be solved. The problem does not
concern the legitimity of statistics: the fact is not if a used statistics
is applicable or not -since its usefulness has been demonstrated- but to
find out if the sample-data used are trustworthy or not.
When we talk about monetary phenomena it must be pointed out that as
long as the money system is not rationalized and transformed into a real
scientific metric system, the trustworthiness of the sample values will
be very doubtful and therefore the application of statistics will fail
in its own basis.
The telematic cheque-invoice is therefore a necessary instrument to
grant the exact recording of the monetary-merchant phenomena observed and
which are to be used later for a statistic generalization.
But it must be pointed out that the existence of mercometrics -a global
accountancy, such as the one obtainable by the centralization, according
to appropriate programmes, of the telematic monetary network- will cause
that in many cases the statistic-deductive treatment will be reserved to
new problems, since the values of the monetary parameters considered in
the population will become exactly known, and very trustworthy (being the
only source of error the telematic system itself).
This accounting centralization of the merchant-monetary activity will
be analysed with more detail in the next chapter.
must clearly distinguish statistics (a mathematical technique) from
(a collection of evaluated data).