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Disequilibrium Macroeconomics: An Episode In The Transformation Of Modern Macroeconomics

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  • Roger Backhouse
  • Mauro Boianovsky

Abstract

The paper investigates the rise and fall of the disequilibrium approach in macroeconomics between the mid 1960s and the late 1970s. During that period macroeconomists became attracted to the interpretation of unemployment phenomena based on the notion that markets are not in equilibrium. It was believed that such an approach could result in supply and demand functions distinct from those of conventional theory. However, by the late 1980s disequilibrium macroeconomics had largely disappeared from view, while approaches influenced by New Classical Macroeconomics and New Keynesian Economics became dominant. The present paper examines the contributions of the main authors - Patinkin, Clower, Leijonhufvud, Barro, Grossman, Solow, Stiglitz and Malinvaud - in order to offer a new pwerspective on the reasons for its sudden disappearance.

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Bibliographic Info

Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] with number 012.

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Date of creation: 2005
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Handle: RePEc:anp:en2005:012

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Cited by:
  1. Goulven Rubin, 2010. "Don Patinkin's Ph.D. dissertation as the prehistory of disequilibrium theories," Working Papers halshs-00636821, HAL.
  2. Mauro Boianovsky & Roger Backhouse, 2006. "Whatever Happened To Microfoundations?," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of G 76, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  3. Alexandre Flávio Silva Andrada, 2011. "Uma Breve História Sobre A Abordagem Dedesequilíbrio Na Economia," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of 233, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

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