1. THE CONCEPTUAL FRAMEWORK. The fact that trade and markets take place sequentially over time in actual economies is a trivial observation. It has nevertheless far-reaching implications. At any moment, economic units have to make decisions that call for immediate action, in the face of a future that is as yet unknown. Expectations about the unknown future play therefore an essential role in the determination of current economic variables. On the other hand, the expectations that traders hold at any time are determined by the information that they have at that date on the economy, in particular on its current and past states. Observed economic processes are thus the result of a strong and complex interaction between expectations of the traders involved and the actual realizations of economic variables.
Unable to display preview. Download preview PDF.
- Benassy, J.P. 1982. The Economics of Market Disequilibrium. New York: Academic Press.Google Scholar
- Benassy, J.P. 1986. Macroeconomics: An Introduction to the Non-Walrasian Approach. New York: Academic Press.Google Scholar
- Debreu, G. 1959. Theory of Value: an axiomatic analysis of economic equilibrium. Cowles Foundation Monograph no. 17, New York: Wiley.Google Scholar
- Friedman, M. 1969. The Optimum Quantity of Money and Other Essays. Chicago: Aldine.Google Scholar
- Grandmont, J.M. (ed.) 1987. Temporary Equilibrium: selected readings. New York: Academic Press.Google Scholar
- Hahn, F.H. 1965. On some problems of proving the existence of an equilibrium in a monetary economy. In The Theory of Interest Rates, ed. F.H. Hahn and F.P.R. Brechling, London: Macmillan; New York: St. Martin’s Press.Google Scholar
- Hicks, J.R. 1939. Value and Capital. Oxford: Clarendon Press; 2nd edn, 1946; 2nd edn, New York: Oxford University Press, 1946.Google Scholar
- Hicks, J.R. 1965. Capital and Growth. Oxford: Clarendon Press; New York: Oxford University Press, 1972.Google Scholar
- Lindahl, E. 1939. Theory of Money and Capital. London: Allen and Unwin; New York: Holt, Rinehart and Winston.Google Scholar
- Malinvaud, E. 1977. The Theory of Unemployment Reconsidered. Oxford: Basil Blackwell: New York: Wiley.Google Scholar
- Negishi, T. 1979. Microeconomic Foundations of Keynesian Macroeconomics. Amsterdam: North-Holland.Google Scholar
- Patinkin, D. 1965. Money, Interest and Prices. 2nd edn, New York: Harper & Row.Google Scholar
- Picard, P. 1985. Théorie du déséquilibre et politique économique. Paris: Economica.Google Scholar