ABSTRACT
Capital-based macroeconomics features the time element in macroeconomic relationships. Time is a fundamental and pervasive dimension in the economics of sustainable and unsustainable growth (Chapter 4) and in several related fiscal and regulatory issues (Chapter 5). The particular treatment of time as one dimension of the Hayekian triangle allows us to incorporate another aspect of the production process. Specifically, the remoteness in time of investment decisions from the eventual availability of consumable goods translates to some extent into riskiness. The more roundabout the production process, the more time for unexpected changes in market conditions to occur. But a fuller understanding of the macroeconomics of risk and uncertainty requires that we look beyond the simple geometry of our capital-based macroeconomic framework.
