We revisit the Stockholm School of Economics with 'first principles'. The objective is the rendition of a cumulative Myrdal-Wicksell process. To that end, we derive heterogenous responses of consumers and firms to changes in the state of the world and define a Myrdal-Keynes equilibrium

"Orthodox macroeconomics is founded on microeconomics. Heterodox economists either reject micro foundations or experiment with behavioural relationships without paying attention to the principles that generate them. The book takes off from Michal Kalecki's aphorism about economics being a...