Abstract
Like the classical theory of hydrodynamics which deduced that airplanes cannot fly, general economic equilibrium frameworks are ill equipped to confront economic reality. As a notable example, the existential reality of money as an institution is a jarring reminder of the analytical limitations of the most sophisticated general equilibrium models.
Published originally in Economie Appliquée, 30 (1977), pp. 617–37, and reproduced with permission.
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© 1992 Robert E. Kuenne
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Kuenne, R.E. (1992). Money, Capital and Interest in Intertemporal General Equilibrium Theory. In: General Equilibrium Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-12752-8_23
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DOI: https://doi.org/10.1007/978-1-349-12752-8_23
Publisher Name: Palgrave Macmillan, London
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