For the last century, economic analysis has been wedded to the idea of equilibrium, in spite of the evident fact that most economic relationships are in flux. The theory of transformational growth in this work replaces equilibrium with history. The role of the market is not to allocate resources, but to generate innovations, which are 'selected' by competition in an evolutionary process. These innovations in turn change the way markets work and how they adjust, thus creating new problems and new kinds of pressures to innovate. Different historical periods can be distinguished with a new one perhaps on the horizon. In each a distinctive style of technology prevails, associated with corresponding institutions and patterns of market behavior. The core relationships provide the foundations for a theory of monetary circulation, which makes possible a revised Keynesian approach, based on Classical foundations.

This book attempts a comprehensive rethinking of economics, including a revision of methodology, redrawing the line between micro and macro.
Reviews
"Presents a theory of transformational growth that replaces equilibrium with history." Journal of Economic Literature



Book Information
ISBN 9780521023597
Author Edward J. Nell
Format Paperback
Page Count 816
Imprint Cambridge University Press
Publisher Cambridge University Press
Weight(grams) 1127g
Dimensions(mm) 235mm * 156mm * 40mm