Microfoundations of Dynamic Macroequations
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In the last three decades, two of the most important ideas of economic theory have undergone a rigorous analysis. I am referring here to the monotonic increasing relationship between the rate of interest and the labour employed per unit of output, and to the adjustment process of prices, known as tâtonnement, in a Walrasian general equilibrium system.
KeywordsCapital Good Representative Agent Aggregate Index Dynamic Shape Expectation Formation
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