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The History of Macroeconomics Viewed against the Background of the Marshall-Walras Divide

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  • Michel De Vroey

Abstract

Analysing the recent history of macroeconomics, my paper claims that the new classical revolution should be viewed as a substitution of Walrasian macroeconomics to the earlier prevailing Marshalian macroeconomics. The first part of the paper is concerned with two conceptual prerequisites, the relationship between macroeconomics and general equilibrium, the meaning of the “Keynesianism” modifier. In a second part, the different facets of the Marshall-Walras divide are expounded. My general claim is substantiated in the third paper of the paper. Herein, I claim that the IS-LM model is a simplified Marshallian general equilibrium model while real business cycle models belong to the Walrasian reserach programme. Finally, I express my scepticism as to the possibility of a New Neoclassical Synthesis.
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  • Michel De Vroey, 2004. "The History of Macroeconomics Viewed against the Background of the Marshall-Walras Divide," History of Political Economy, Duke University Press, vol. 36(5), pages 57-91, Supplemen.
  • Handle: RePEc:hop:hopeec:v:36:y:2004:i:5:p:57-91
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Michel De Vroey, 2012. "Microfoundations: A Decisive Dividing Line between Keynesian and New Classical Macroeconomics?," Chapters,in: Microfoundations Reconsidered, chapter 5 Edward Elgar Publishing.
    2. Mark Hayes, 2006. "The Economics of Keynes: A New Guide to The General Theory," Books, Post Keynesian Economics Study Group (PKSG), number nggt.
    3. Michel De Vroey, 2007. "Did The Market-Clearing Postulate Pre-Exist New Classical Economics? The Case Of Marshallian Theory," Manchester School, University of Manchester, pages 328-348.
    4. Zoran Stefanovic, Branislav Mitrovic, 2015. "Revisiting New Institutional Economics: Basic Concepts And Research Directions," Ekonomika, Journal for Economic Theory and Practice and Social Issues 2014-04, „Ekonomika“ Society of Economists, Niš (Serbia).
    5. Pedro Garcia Duarte, 2013. "A Path Through the Wilderness: Time Discounting in Growth Models," Working Papers, Department of Economics 2013_18, University of São Paulo (FEA-USP).
    6. Pedro Garcia Duarte, 2012. "Not Going Away? Microfoundations in the Making of a New Consensus in Macroeconomics," Chapters,in: Microfoundations Reconsidered, chapter 6 Edward Elgar Publishing.
    7. Pedro Garcia Duarte, 2012. "Not Going Away? Microfoundations in the Making of a New Consensus in Macroeconomics," Chapters,in: Microfoundations Reconsidered, chapter 6 Edward Elgar Publishing.
    8. Kevin Hoover, 2005. "Dr. Keynes: Economic Theory in a Diagnostic Science," Working Papers 63, University of California, Davis, Department of Economics.
    9. Schilirò, Daniele, 2005. "Il simposio su "mr. Keynes' system" all'Oxford meeting e il modello is-lm
      [The symposium on " mr. Keynes' system" to the Oxford meeting and the is-lm model]
      ," MPRA Paper 33019, University Library of Munich, Germany.

    More about this item

    Keywords

    Alfred Marshall; Leon Walras; macroeconomics;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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