ABSTRACT

We will first look at the development of dynamic method ana the Wicksellian influence on the Stockholm School.

The School starts with Myrdal's dissertation of 1927 where the main contribution was the construction of the 'method of expectation'. This method includes anticipations as a datum in determining a long run equilibrium position, which was an innovation with respect to the current tradition. Myrdal's interest seems to have been aroused by the limitations of the static method as developed by Cassel, and his positive solution might have been influenced by Knight's treatment of anticipations.