ABSTRACT
This chapter discusses some of the theoretical differences between Post Walrasian and Walrasian macro theorizing as they relate to policy. It examines how an acceptance of Post Walrasian economics might change the focus of macro policy discussions. Walrasian economics has, as its underlying vision, the standard Walrasian general equilibrium model of the economy. It focuses on a unique equilibrium model where market failures are characterized as deviations from optimality. The distinction between Walrasian and Post Walrasian economics can be overdone. Modem Walrasian economics has gone beyond the standard approach, and there are few economists left who are still limiting their research to the strict Walrasian program. The economics of control changed that to a motto where free dinners were available to economic controllers through the science of economics. The addition of other goals of policy highlights a terminological shortcut that economists have made when discussing policy. That shortcut is talking about efficiency as a goal of policy.
