Hard core information transfer economics
Noah Smith had a link that reminded me of something from the philosophy of science in his post from yesterday. It inspired me to lay out the "hard core" of the information transfer economics research program since it is fairly simple:
1. Demand is a source of information that is transferred to the supply, and a price is a detector of information transfer.
2. The dynamics of supply, demand and the price are governed by the differential equation (and definition):
$$ p \equiv \frac{dD}{dS} = \frac{1}{\kappa} \; \frac{D}{S} $$
There are two approaches to macroeconomics I've been taking. One is that macro is just like micro: you can write down aggregate demand and aggregate supply functions just like you'd do for a single good market. The second is that macro is the sum of micro: i.e. macroeconomic observables are expectation values of microeconomic observables in an ensemble of micro markets. The former may be a good approximation to the latter within some realm of validity. The first approach is an "auxiliary hypothesis" in the Lakatosian sense. The second adds some assumptions around the partition function as auxiliary hypotheses.
The idea of a changing $\kappa$ in the price level is another "auxiliary hypothesis" (this has some support from the sum of micro approach). The idea that the "price" of a treasury bond with interest rate $r$ is $r^{c}$ is another auxiliary hypothesis.