The neoclassical theory of the firm has developed along two distinct lines. The static theory develops the implications of profit maximization for the determination of factor demands, output, and equilibrium firm size. The dynamic theory uses intertemporal optimization to analyze the investment...

Keynes-Wicksell models are one of the approaches to monetary growth theory. The essential features of the KW models are independent investment savings decisions, and the explicit representation of a price equation in which prices rise only in response to excess demand in the goods market. Then,...

This paper argues that a key difference between the monetarists and the neo-Keynesians is their respective views about how monetary policy works. Both views are shown to be special cases of the integrated model developed. The model is presented in such a form that it is a relatively...

This paper reports on discussions at the Workshop on Macroeconomic Policy Effectiveness held at the OECD in Paris in June 1981.

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The present paper develops a model of exchange rate and price level determination as the simultaneous solution to goods and asset market equilibrium in conjunction with purchasing power parity. Exchange rate changes operate through income, wealth and substitution effects to have real...