chapter  Eight
9 Pages

Generalizing the General Theory

After World War II, Cambridge economics remained distinct from the major fashions which swept over American economics. Via new textbooks, the new economics first drowned the institutionalists, then emerged as a mainstream of Walrasian-Keynesian theory bristling with econometric studies and austere mathematical models. The Cambridge tradition was one of evolution of economic theory in response to problems in both construction of theory and a theory's relation to the real world. Joan Robinson called these new efforts "generalizing the General Theory." Robinson called this the beginning of the shifting of the "center of interest" to the classical problems of over-all growth of the economy. In an ambitious and daring book, The Accumulation of Capital, Joan Robinson directly challenged orthodoxy by offering alternative formalistic models which attempted to deal with both logical and historical time. The text of Accumulation of Capital followed the pattern which was so admired in Imperfect Competition.