The present study aims to perceive an unacceptable unreality of a macro price mechanism: that is, the unreality that under any severe recession, deterioration of deflation or a consistent decrease in the rate of inflation will lead an economy to full employment equilibrium. This unreality...

This study challenges the prevailing theories of modern macroeconomics based on observations of a real economy and skepticism toward existing theories. Two main hypotheses are tested. First, the price mechanism is significantly incomplete in a Walrasian economy and does not function,...

This paper addresses several key issues regarding the recent Great Crisis 2007-2009. The main ones are: was the financial crisis predictable by standard economic models? If not, are these models lacking of forecasting capabilities, or it is not a task of economic models to predict external...

The objective of this paper is to propose an analytical framework to examine the foundations of the theory of efficient growth. The theory of efficient growth is a newly developed theory based on the principles of the neoclassical framework. It argues that an economy grows efficiently under two...