ABSTRACT
In order to address the complexity or real world, orthodox analysis has developed various models to take account of the 'rigidities' of real markets. In fact, given the microeconomic imperfections illustrated before, it is wildly unrealistic to suppose a perfect flexibility of markets at full employment level. One central reason for this is that the phenomenon of satiation for a large category of products, which, by lowering the price elasticity of demand, makes it unprofitable for firms to reduce prices. This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book is organized in five Parts: pluralism, ethics and economic method; sustainable macroeconomy and structural policies; money and monetary regimes; development issues and the role of public action; and improving pluralism in economics education.
