Capital and Credit
A New Formulation of General Equilibrium Theory

A much-needed synthesis of growth theory and monetary theory, which formulates a capital-theoretic general equilibrium theory.

Michio Morishima (Author)

9780521418409, Cambridge University Press

Hardback, published 8 October 1992

226 pages
22.9 x 15.2 x 1.6 cm, 0.5 kg

Contemporary general equilibrium theory is characteristically short-run, separated from monetary aspects of the economy, and as such does not deal with long-run problems such as capital accumulation, innovation, and the historical movement of the economy. These phenomena are discussed by growth theory, which assumes a given or shifting production function, and in turn cannot therefore deal with the fundamental problem of growth, namely how the production function is derived. Thus traditional theories have a common weakness in that they divorce real economic growth from the activities of the financial sector. This book provides a much-needed synthesis of growth theory and monetary theory. Professor Morishima draws on the work of Schumpeter, Keynes and the pre-war neoclassical economists to formulate a capital-theoretic general equilibrium theory.

Preface
1. Introduction
2, Capitalist production
3. Production possibility set
4. Temporary equilibrium
5. Stability and motion
6. Innovations and financing
7. Monetary disequilibrium
8. Summary and perspectives into the future
Appendices
I. Existence of temporary equilibrium
II. Increasing returns.

Subject Areas: Economic theory & philosophy [KCA]