ABSTRACT
This chapter and the subsequent one are concerned with the so-called disequilibrium approach. Its starting point is Chapters XIII and XIV of Patinkin’s Money, Interest and Prices (1965). Patinkin’s views received a new impetus in Clower’s Keynesian Counter-revolution article (1965) and Leijonhufvud’s book On Keynesian Economics and the Economics of Keynes (1968). Patinkin and Clower’s views were synthesised by Barro and Grossman in their 1971 article and 1976 book. While Barro and Grossman were soon to recant the line they had opened, their work sparked important developments. Benassy, Malinvaud, Drèze, Grandmont, Laroque, Younes, Muellbauer and Portes were amongst the main proponents of the new approach. The latter took off fast yet its success was short-lived, as most of the economists who rallied it gradually shifted their attention to other research themes.1
