seb_pard
Jr. Member
Posts: 656
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« on: January 02, 2015, 11:36:46 AM » |
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The Classical theory that dominated the economic field before the 30's emphasized the general equilibrium, and they believed that through transactions between the agents (supply and demand) the market would reach a competitive equilibrium (see for example Walras' Law).
Keynes proposed that markets are not always on the equilibrium point (Supply=Demand) but near that equilibrium and he said that sometimes when the markets are unbalanced, in a competitive environment, the optimum could not be reached (even when the prices and quantities traded are near the equilibrium at the beginning). See liquidity trap.
So I think this is his general case.
My English sucks but hope to help.
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