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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.73, # 1, 2016, pp. 4-37

and will not look into details of the mechanism through which exchange is
performed. These will not contain the thesis relating to money, banks, taxes and
political activity, which focuses on influencing the conditions of the distribution‖
[Clark James.,2000].
If the notion, as Milton Friedman puts it, ―has firmly been defined and the
growth rates have been set‖ [Clark James.,2000], such requirements are similar to
the act of formulation of major laws that serve the fundamental basis of legal rules
and regulations of such laws. These serve the fundamental basis of ―fair laws
prescribing fiscal and monetary policy makers to ensure some concrete growth rates
of the growth of money mass‖ [Clark James.,2000] .
The name of Milton Friedman is associated with the main formula of the
monetary policy. Such policy defines equality of the GDP deflator (pp) multiplied
by real GDP (RGDP) with money velocity (V) multiplied by money mass (M). That
serves well for the main law on assessment of the split between the indicators of real
and financial sectors‘ [Clark James.,2000] .
According to John B. Clark, exploring and discovering the very essence of
economic laws on the development of production levers of the social progress, the
formulaic expression of the social process and the ability to apply the equations on
the macroeconomic processes in either their static or dynamic state is itself the
scientific approach.
If not, any policy maker who adopts management decisions relating to the
labor efforts that are exerted by economic entities would be deprived of the random
opportunity to not only understand the concept but also grasp the inherent meaning
in the realm of sporadic daily routine.
In effect, there exist the methodological techniques that use mathematical
statistics. Those are based on the probability theory. Such techniques may also be
applied, wherever needed, in their capacity of the auxiliary techniques. These are
more labor intensive and thus more grounded since they are based on the analyses
methods relating to static standards. The mentioned methodology is suitable for
economic analyses, applicable to the developed countries rather than the developing.
The second part of John B. Clark‘s book is dedicated to the analysis of the social
and economic systems, in statics. This part of the book may conditionally be referred
as the ‗Analyses of Macroeconomics‘, in statics. The unique feature of this section of
the book relates to the analysis of macroeconomics, when the economy remains
undisturbed or, in other words, static. Under such state, it is easier to assess economic
equilibrium in the current year against the base year. Thus, under the monetarism
model, the equilibrium equation is determined between the nominal GDP (NGDP) and
real GDP. Such equation avails of the power of the economic law:

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