A macro economy as an ecology of plans

Standard macro theories reflect a choice-theoretic orientation wherein aggregate variables are treated as acting directly on one another. Macro phenomena are thus reduced to the same order of simplicity as micro phenomena; macro variables differ from micro variables only by their larger size. In contrast, this paper treats the relationship between micro and macro as non-scalable. Macro phenomena emerge through micro interaction and are of a higher order of complexity than micro phenomena. Rather than reducing macro to micro through scalar multiplication, macro phenomena supervene on micro interaction and are not themselves objects of direct action. A macro economy is treated as a complex ecology of plans that constitute a non-equilibrium process of spontaneous ordering.

► Macro is related to micro through supervenience and not through reduction. ► All action, including policy action, is located at the micro level. ► A macro economy is an ecology of plans and not an aggregation of plans. ► Macro theorizing is a form of spontaneous order theorizing. ► Macro theory is presented within a bi-planar theoretical framework.