Capital and Credit A New Formulation of General Equilibrium Theory [Hardcover]

A much-needed synthesis of growth theory and monetary theory, which formulates a capital-theoretic general equilibrium theory.Drawing on the work of Schumpeter, Keynes and the prewar neoclassical economists, Morishima provides a much-needed synthesis of growth and monetary theory to formulate a capital-theoretic general equilibrium theory.Drawing on the work of Schumpeter, Keynes and the prewar neoclassical economists, Morishima provides a much-needed synthesis of growth and monetary theory to formulate a capital-theoretic general equilibrium theory.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 being short term, cannot deal with the fundamental problem of how the production function is derived. This book provides a much-needed synthesis of growth and monetary theory, drawing on the work of Schumpeter, Keynes and the prewar 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.