General Equilibrium, Capital And Macroeconomics

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ISBN:9781843768296
Editorial: Edward Elgar
Fecha de la edición:2004
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Nº Pág.:400
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/ Análisis Económico

This book argues that the shift in general equilibrium theory, from its early long-period to the modern very-short-period versions, has had very important consequences which are insufficiently appreciated by large parts of the economics profession. This shift has produced new difficulties, and has undermined central tenets of neoclassical macroeconomic theory (such as the negative dependence of aggregate investment on the interest rate, or the existence of a downward-sloping demand curve for labour) which had their basis in the long-period versions where capital was treated as a single factor.