Frederick Betz

In 2020, the global corona-virus pandemic created economic crises and market panics in most nations of the world. The central bank, in each nation, took actions to calm financial markets and avoid economic depression. This expansion of central bank functions had begun in the previous 2008 global financial crisis and was increased in 2020. We analyze this 2020 pandemic financial crisis to understand the new spectrum of central bank functions, and we apply system models of monetary policy and fiscal policy to identify operations of central banks.

In 2020, the global corona-virus pandemic created economic crises and market panics in most nations of the world. The central bank, in each nation, took actions to calm financial markets and avoid economic depression. This expansion of central bank functions had begun in the previous 2008 global financial crisis and was increased in 2020. We analyze this 2020 pandemic financial crisis to understand the new spectrum of central bank functions, and we apply system models of monetary policy and fiscal policy to identify operations of central banks.

We have modeled how financial markets trading capital assets can go into price disequilibrium and create financial bubbles. We next modeled how within an international financial grid, investment banks create the financial products of a financial market. And we saw how the unregulated networks in the grid produce and sell financial products of questionable quality and little public good. Next we modeled how the sovereign bonds of Greek nation went into price disequilibrium, triggering a financial crisis in Greece and a subsequent depression lasting over 5 years. But at the same time of the fiscal crisis in Greece, a fiscal crisis occurred in Spain. And after 2010, Spain’s fiscal crisis was solved but Greece’s was not solved. Why the difference between Spain’s solution and Greece’s lack of solution to their fiscal problems? It had to do with the different market sources of the crises, a private-debt market in Spain and a public debt-market in Greece.

Disequilibrium financial markets are now embedded in international financial networks, which direct the flow of capital around the world. These international cash flows are involved in the process of international banking; and the modern technologies of information and communications (IC) have increased the speed, volume, and complexity of international flows. But at the end of the twentieth century, the global world began to experience destabilizing international flows—particularly in the Asian financial crisis of 1997, Global financial crisis of 2007, and Euro crisis of 2010. In using the IC technologies, how has international banking increased the frequency and intensity of international financial crises?

Not only can stock markets crash in financial bubbles, nations also can collapse in government fiscal bubbles. How did the financial grid assist in making a national fiscal crisis deeper? As previously noted, international investment banking assisted Greece in hiding the size of it national debt. How did the continuously increasing debt finally trigger a fiscal crisis in Greece, depressing its economy and destabilizing governments?

Even good people get tempted. The basic truism about any financial system is that’s its about money; and the truth about money is that there will always be people to cheat, to steal it. Money is the repository of wealth and what better to steal—than money? This is why financial systems must be regulated. Financial systems are temptations to theft and corruption, which do not contribute to the public good due to a lack of proper regulation. We saw in the model of the international financial grid that abuse of financial integrity is deep, widespread, and costly to the public good. We conclude this book with examining cases of theft—individual corruption and institutional corruption—the case of Libor in the twenty-first century and the case of the South Sea Bubble in the eighteenth century.

Even in the modern ‘knowledge economy’ in a global world, financial systems still continue to be central to global commerce. Technological advances in computer and communications have changed both knowledge and the economy and also the financial system. Globalization and technology have made international finance more powerful and important to the world; but they have increased volatility, instability, and fraud in international finance. For example, Martin Wolf wrote: “It is possible to identify … two huge shifts (in the economy). One is ‘liberalization’, the reliance on market forces across much of the world economy, including and notably, in finance. A second is ‘technological change’, in particular the information and communications technology revolution, which turbocharged the integration of economies, again, quite particularly, financial markets …. These great shifts of our time have permitted or created significant further changes. Among the most important have been: the emergence of a globalized world economy; soaring inequality in most economies; the entry of gigantic emerging economies (e.g., China and India) …, In brief, we have a world that is in the midst of historic shifts towards a more market-oriented, financially driven and globalized world economy …. It is a world that has seen downward shocks to the rate of inflation. It is also, it turns out, a world that is hugely crisis prone.” (Wolf 2014)

Chapter 1 societal wisdom chapter 2 ideology and dictatorship chapter 3 idealsm and realism chapter 4 societal models chapter 5 ethics in society chapter 6 empirical and add the chapter 7 designing society chapter 8 re-designing society chapter 9 reforming society chapter 10 self-organizing systems chapter 11 societal stasis and change chapter 12 methodology for integrating history and social sciences.

From the Publisher: Strategy is a subject widely taught in colleges and is a key component for organizations that wish to sustain their market-share on a long-term basis. With the recent advances in technology and the increasing reliance on information technology in daily business practices, the study of strategic management needs to be updated to merge traditional strategic values and modern computerized procedures. The case studies in the text and on the web-site will demonstrate to the reader the necessity of effective strategic management and the results that can be created by its implementation.

There is a second example in economic history of hegemony in international finance. After the Dutch Republic established a liberal hegemony in finance in the 1600s, they were replaced in the 1700s by the British Empire, which provided as subsequent stable financial system for international trade. Andrew Sobel wrote: “The British gradually replaced the Dutch as the commercial and financial hegemon, emerging at the center of the global political economy by the middle to late 1700s. The transition was relatively peaceful, at least between the Dutch and the British. The movement of surplus Dutch capital and Dutch financial skills and innovations to the financial markets in London were important contributors to London’s becoming the preeminent international financial and commercial center. The baton of global leadership passed gradually during the 1700s, and British hegemony lasted until the First World War.” (Sobel 2012)

ABSTRACT The German Mittelstand model of the triple helix has been important for facilitating the innovation of small medium enterprises (SMEs) in Germany. Fraunhofer Institutes have provided an innovation intermediary between university research and SME technology. We address the issue of adapting a Mittelstand triple helix from the German national culture into other cultures, particularly to South Korea. For this, we develop a general model of a Mittelstand triple helix.

... Executive strategy: strategic management and information technology / Frederick Betz. ... the legendary chairman of Chrysler Motors whose autobiography sold 2.6 million copies in hardcover and 3.5 million in paper back in North ... William Abernathy and Kim Clark even introduced ...

This case study examines the global financial debacle of 2007–2008 to see the roles in which technology played in new financial schemes. It uses theory about social-technical systems and applications of technology to analyze the case. It identifies theoretical issues in which MOT can relate to classical economic theory.

The commercial benefits of technological change arise only from the proper convergence of several factors — corporate governance, financial markets, tax policy, and technological innovation. We explore a case in the United States in the 1990s when these factors were improperly handled and created a financial bubble without economic advance. There must be together — a proper business climate, proper tax laws, proper corporate governance, proper investment in innovation, and proper science & technology infrastructures. Distortion of these factors fosters not economic growth but corporate fraud.

Computer-based algorithms & models have become important in trading in financial markets. We illustrate the significance of model analysis of financial systems by a case study of BlackRock’s analytical platform called ‘Aladdin’. The nature of the model used in a computer algorithm is central to its real performance. Unreal models in financial algorithms will yield inaccurate performances. We review five fundamental models of economic dynamics: (1) traditional price-equilibrium of a commodity market, (2) Keynes-Minsky financial transactions over time, (3) price-disequilibrium of a financial market, (4) investment bank market disequilibrium process, and (5) disequilibrium financial grid of international capital flows. Empirically-valid graphic models are necessary – in order to methodologically develop societal-useful normative economic theory -- based upon the real natural-experiments of societies in economic history.

... The reform of the German universities was, in part, promoted by the King of Prussia's desire to have engineers and doctors for his ... In fact, it is only after World War II that public debate expresses concern for mass higher-education and gaps between ... B-126 FREDERICK BETZ ...

In the modern knowledge economy in a global world, financial socio-technical systems still continue to be central to global commerce.  Moreover, technological advances in computer and communications have changed both the knowledge economy and the financial system.  While globalization and technology have made international finance more powerful and important to knowledge economies; yet also they have increased the volatility, instability, and fraudulent use of international finance.

Why are international financial systems unstable?  To understand this, one must use a proper model for a financial market -- a model which is not just normative but empirically valid.  The traditional market model of price-equilibrium, while valid for commodity markets, is not empirically valid for financial markets.  Instead, financial markets must be understood in a price-disequilibrium model.  A price-disequilibrium model traces back to the studies of Irving Fisher, John Maynard Keynes, and Hyman Minsky.
We present here a three-dimensional supply-demand model which can depict how, over time, a financial market can move from a price equilibrium toward disequilibrium, due to speculation – a financial bubble.

What is science?  How is it performed?  Is science only a method or is it also an institution?  Here we will focus on science as a whole -- both method and institution.  Science is a complicated topic because it includes both methodological and organizational aspects.  Moreover, these have been historically evolving. 
Traditionally the philosophy and organization and history of science all have been discussed separately -- in the different literatures of philosophy of science, of sociology of science, and of history of science.  However as many have recognized, this separation is one of the literature and not of practice.  A consequence of this separation has been that a researcher, or a student of science, who tries to understand the real practice of science has had to read about science in three literatures -- but which even together did not necessarily integrate into a complete picture of science.  This book brings these perspectives together to provide a integrated picture. For this integration, I have used the term 'totality of science' -- completeness of scientific activities.
Why should one want a complete picture of science?  It is important to understand science as a whole -- because science is a major force in modern society -- culturally and practically

Instability impacts the economies not only of industrially developed countries but also developing countries.  The Asian Financial Crisis of 1997-99 impacted the economic development of Thailand, Indonesia, South Korea, and several other countries.  The big picture of a nation's economic system is studied in a topic called macro-economics.  But while ‘big pictures’ are always useful, often it is the ’little pictures’—microeconomics – in which the hard ‘graininess of reality’ is seen and felt.  By examining individual cases, one gets a sense of the harsh impact which instability can have upon a society.

'Industrialization' is a necessity but also a challenge for modern nations.  Industrialization is the application of science and technology to the means of producing the goods and services needed in society.  Science began only in the late 1600s, and industrialization began only in the late 1700s.  The modern world has been experiencing the industrialization of nations for three hundred years, first in Europe, then in America, and next in Asia.  Here is the current situation.  The world is continuing to be industrialized, but now within a global context.  The point of industrialization is to attain a prosperous and stable society.  Prosperity means that a nation's population all can live above a poverty level.  Instabilities in a society include financial crises, economic depressions, foreign wars, insurrections and civil wars.  As yet no industrial nation has achieved both prosperity and stability.

Societal dynamics is the pattern of change and stability in societies – alternating crisis and stasis. Societal dynamics is both history and contemporary news. . . . The issues we are to examine are: (1) how to analyze the complexity in such
societal events and (2) how to relate this complexity to theories about society? These  are two fundamental issues in the methodology of historical studies and of social science studies.
Methodologically, how can one base social science theory construction upon the empiricism of historical studies?
Methodologically, how can one integrate the social science disciplines to theoretically understand all of a society (instead of only disciplinary slices through society)?
But before we begin our examination of history/science methodology, we review two ideas in scientifi c method – “scientifi c paradigm” and “scientifi c perceptual space.” These are central to modern methodology.