ABSTRACT

The first question relates to the existence of a School. Our reconstruction will show that there was an interrelated development of dynamic method, and this development, once it was under way, was almost completely isolated from outside influences. Furthermore, the construction of the different methods was probably a unique accomplishment, except for intertemporal equilibrium. Indeed, it is held that their ideas on macroeconomic theory and economic policy cannot prove the existence of a particular school, since these ideas were influenced by outside sources and they were therefore not unique. Hence, it will be argued that the development of dynamic method is the essential element of the Stockholm School. To support this proposition it is necessary to show that the outside influence on the development of the dynamic method was insignificant. But on the other hand it does not matter whether they took most of their macroeconomic ideas from foreign sources.