Disequilibrium and Regulation: A Confrontation between the Two Approaches

Abstract

A confrontation of the two main currents of Keynesian interpretation in terms of disequilibrium and regulation may seem paradoxical, for there can be no doubt that the framework of Keynes’s General Theory was equilibrium. His message is not one of disequilibrium dynamics, but rather a demonstration that situations of stable macroeconomic equilibrium at less than full employment equilibrium may exist at any point of time. However, recent studies that may be considered as being in the tradition of, or being built upon, Keynes’s work have been formulated in terms of disequilibrium and regulation.