The Microeconomic Foundations of Macroeconomics: Proceedings of a Conference held by the International Economic Association at S’Agaro, Spain

411 Pages·1977·44.923 MB·English

by  Professor G. C. Harcourt (eds.)

The Microeconomic Foundations
of Macroeconomics
Other International Economic Association Publications
Monopoly and Competition and their Regulation
The Economic Consequences of the Size of Nations
The Theory of Capital
Inflation
The Economics of Take-Off into Sustained Growth
International Trade Theory in a Developing World
The Theory of Interest Rates
The Economics of Education
Problems in Economic Development
Price Formation in Various Economies
The Distribution of National Income
Risk and Uncertainty
Economic Problems of Agriculture in Industrial Societies
International Economic Relations
Backward Areas in Advanced Countries
Public Economics
Economic Development in South Asia
North American and Western European Economic Policies
Planning and Market Relations
The Gap Between Rich and Poor Nations
Latin America in the International Economy
Models of Economic Growth
Science and Technology in Economic Growth
Allocation under Uncertainty
Transport and the Urban Environment
The Economics of Health and Medical Care
The Management of Water Quality and the Environment
Agriculture Policy in Developing Countries
The Economic Development of Bangladesh
Economic Factors in Population Growth
Classics in the Theory of Public Finance
Methods of Long-Term Planning and Forecasting
Economic Integration
The Economics of Public Services
Inflation Theory and Anti-Inflation Policy
The Organization and Retrieval of Economic Knowledge
Economic Relations between East and West
Econometric Contributions to Public Policy
Appropriate Technologies for Third World Development
Economic Growth and Resources
The Microeconomic
Foundations of
Macroeconomics
Proceed1ngs of a Conference held by the
International Economic Association
at S'Agaro. Spam
EDITED BY
G. C. H ARC 0 U R T
M
©The International Economic Association 1977
Softcover reprint of the hardcover 1st edition 1977 978-0-333-21536-4
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission
First edition 1977
Reprinted 1978, 1979
Published by
THE MACMillAN PRESS LTD
London and Basingstoke
Associated companies in Delhi Dublin Hong Kong Johannesburg
Lagos Melbourne New York Singapore Tokyo
ISBN 978-1-349-03238-9 ISBN 978-1-349-03236-5 (eBook)
DOI 10.1007/978-1-349-03236-5
This book is sold subject
to the standard conditions
of the Net Book Agreement
Contents
Acknowledgements vii
List of Participants viii
Introduction G. C. Harcourt 2
2 Keynesian Economics and General Equilibrium Theory:
Reflections on Some Current Debates
F. H. Hahn 25
2 On Temporary Keynesian Equilibrium
J.-M. Grandmont and G. Laroque 41
3 Some New Concepts for the Microeconomic Foundations of
Macroeconomics
E. Malinvaud and Y. Younes 62
Discussion 86
4 What Kind of Microeconomic Foundations of Macroeconomics
are Necessary?
E. Streissler 96
Discussion 133
5 Examples of Production Relations Based on Microdata
T. C. Kooprnans 144
Discussion 172
6 Aggregation Problems of Macroeconomics
H. A. J. Green 179
Discussion 195
7 The Role, Functions and Definition of Money
C. A. E. Goodhart 20-5
Discussion 228
8 Some Issues on Firm Behaviour in Light ofMicroeconomic
Foundations of Economics
J. Segura 240
Discussion 254
9 Costs and Consequences of Inflation
A. Leijonhufvud 265
Discussion 313
10 Profits and Investment: a Kaleckian Approach
A. Asimakopulos 328
Discussion 343
11 An Aspect of the Economic Role of Unemployment
R. E. Hall 354
Discussion 365
12 Final Discussion Session 373
Index 397
Acknowledgements
The International Economic Association wishes to express, as always, its
gratitude to the two great organisations which have supported its work and
made possible the holding of such conferences as the present one which brings
together, for vigorous argument, the experts in various fields of economics,
UNESCO and the Ford Foundation.
The conference here recorded was largely made possible by the energies of
a Local Committee promoted and organised by the Servicio de Estudios en
Barcelona del Banco Uriquijo, with the support and collaboration of the cor
responding research departments of the Banco Atlantico, the Banca Catalana,
the Banca Mas Sarda, the Banco Occidental and of the Communidad Turistica
de la Costa Brava.
It was their generosity and active practical assistance which made it
possible to hold the conference in the very beautiful and comfortable setting
of the Hotel Gavina at S' Agaro. As so often is the case, the arguments of the
conference room were continued even more vigorously on the terraces.
The planning of the conference owed very much to Sir John Hicks
individually, and to the programme committee listed below. The more than
usually full and important record of the discussions has been the work of
Susan Howson, helped by Don Moggridge.
Programme Committee
Geoffrey Harcourt (Chairman)
Sir John Hicks
Takashi Negishi
Luigi Spaventa
Erich Streissler
James Tobin
Rapporteurs
Susan Howson
Don Moggridge
List of Participants
Professor A. Asimakopulos, McGill University, Montreal, Canada
Professor James L. Cochrane, Department of Economics, University of South
Carolina, U.S.A.
Professor Paul Davidson, Rutgers- The State University, New Brunswick,
New Jersey, U.S.A.
Professor Luc Fauvel, Secretary General, International Economic Association,
Paris, France
Professor Dr. Bruno S. Frey, University of Konstanz, Germany, and University
of Basel, Switzerland
Professor Pi.erangelo Garegnani, University of Rome
Dr. C. A. E. Goodhart, Bank of England, London, U.K.
Dr. Jean Michel Grandmont, CEPREMAP, Paris, France
Professor H. A. John Green, University of Kent, Canterbury, England
Professor G. C. Harcourt, University of Adelaide, South Australia
Professor Pierre-Yves Henin, University of Paris I and University of Orleans,
France
Dr. L. Hernandez-Albert, Barcelona University, Spain
Professor Sir John Hicks, University of Oxford, U.K.
Lady Hicks, Unacre College, Oxford, U.K.
Dr. Susan Howson, Wolfson College, Cambridge, U.K., (now Scarborough
College, University of Toronto, Canada)
Professor Lucio Izzo, Istituto di Economia, Facolta di Scienze Statistiche,
Demografiche e Attuaziali, University of Rome
Professor Jose Jane-Sola, University of Barcelona, Spain
Professor Tjalling C. Koopmans, Department of Economics, Cowles Founda-
tion, Yale University, New Haven, Connecticut, U.S.A.
Professor Axel Leijonhufvud, University of California, Los Angeles, U.S.A.
Mr Edmond Malinvaud, I.N.S.E.E., Paris, France
Professor Alvin Marty, City University of New York, U.S.A.
Professor D. E. Moggridge, Scarborough College, University of Toronto,
Canada
Professor Takashi Negishi, London School of Economics and Political Science,
and University of Tokyo
Professor Edward J. Nell, Graduate Faculty, New School for Social Research,
New York, U.S.A. _
Dr. Domenico Mario Nuti, Faculty of Economics and Politics, Cambridge,
U.K.
List of Participants ix
Professor Michael Parkin, University of Western Ontario, London, Canada
Professor Sir Austin Robinson, University of Cambridge, U.K.
Professor Julio Segura, University of Madrid, Spain
Professor Martin Shubik, Yale University, New Haven, Connecticut, U.S.A.
Professor Luigi Spaventa, Istituto di Economia, Facolta di Scienze Statistiche,
Rome
Professor Joseph E. Stiglitz, Stanford University, California, U.S.A. (now All
Souls College, Oxford, U.K.)
Professor Erich W. Streissler, University of Vienna, Austria
Dr. Richard James Sweeney, Office of Policy Research, United States Treasury
Department Washington, D.C., U.S.A.
Mr. Yves Youn~s. Maitre de Recherches C.N.R.S. - C.E.P.R.E.M.A.P., Paris,
France