What kind of Microeconomic Foundations of Macroeconomics are necessary?
To begin with, it is easier to state what the microeconomic foundations of macroeconomics should not be. Basically the whole discussion about the need for a microeconomic foundation of macroeconomics is the expression first of a revolt against, and then of a partial return to, figures of thought symbolised (for me) by the Marshallian concept of a ‘representative firm’1.
KeywordsBusiness Cycle Credit Rationing Excess Demand Full Employment Global Constraint
Unable to display preview. Download preview PDF.