Macroeconomic disequilibrium theory: to what extent was it non-walrasian?

Rodolphe Dos Santos Ferreira*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

According to a recurring remark, the models developed in the 1970s on the basis of the reappraisal of Keynesian theory and characterised as macroeconomic disequilibrium models should preferably be called non-Walrasian equilibrium models. This paper questions the denial of Walras claimed by this label. The quantity signals in the agents' environments appear as extending rather than rejecting Walras. The assumed price rigidity ends up putting the blame on the economy for not being Walrasian enough. Even price setting by agents facing subjective demand curves, made compatible with observations by some kind of tâtonnement in their par ameters, does not completely break with Walras.

Original languageEnglish
Pages (from-to)69-82
Number of pages14
JournalHistory of Economic Ideas
Volume29
Issue number1
DOIs
Publication statusPublished - 2021

Keywords

  • Coordination
  • Disequilibrium macroeconomics
  • Fixprice analysis
  • Monopolistic price setting
  • Non-Walrasian equilibria
  • Price rigidity
  • Tâtonnement in quantities

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