Speculation, Rational Expectations and the Pure Theory of the Macroeconomy

Abstract

After publication of the General Theory, economists centred on the existence of full-employment equilibrium without reflecting on the principal problem: can the players in the macroeconomic game reach the set of imputations comprising its core?; are they intrinsically incapable of achieving a strong equilibrium, i.e. the solution of the problem in welfare economics conjugate to the macroequilibrium problem?; if not, why not?