This paper explores the connections between the theories of the Stockhom School and the economic orthodoxy of the 1930’s. First, we reconstitute the classical, Cambridge and Wicksell’s conceptions on saving and its relations with investment. Next, we define the unifying principle behind the...

Modern economic theory cannot make sense of the operation of the economy and following from that failing, modern economists are unable to formulate policies that permit the economy to expand and allow real incomes to rise. The central problem is the near universal adoption of Keynesian economic...

In 1936, Keynes published The General Theory of Employment, Interest and Money, one of the most influential books in economics of the twentieth century. With this publication, Keynes has confused and will continue to confuse generations of economists as to what classical economics means. This...

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

This text challenges assumptions about the foundations of the Leon Walras' marginalist theory in the utilitarianism of Jeremy Bentham. The problematic is approached through a comparative study between Bentham's and Walras' ideas on three focus areas: 1. their views of society and the social...

For most economists at Chicago, Marshall was simply an input, the supplier of an approach to economic analysis. For Ronald Coase, however, Marshall was much more than this — a subject of fascination and, at times, almost a reverence and obsession. Trained in the late 1920s and early 1930s at...

This paper examines Alfred Marshall's theory of organization and business management, and explores the significance of his wisdom and foresight. Despite considerable research on Alfred Marshall’s economic theory, little attention, among economists in particular, has been given to his theory of...

Chapter 2 is one of the most important chapters in the General Theory. Not only does it set out Keynes' disagreements with key elements of the classical model, it lays out his own model of the working of the labour market, which underlies the analysis in the remainder of the General Theory. The...