ABSTRACT

It seems to me that equilibrium theorists are saying: the world must be like the Walrasian model because that is the model we have. Those who are in touch with reality seem to say: the world is not like the Walrasian model, but perhaps the resemblance could be made closer. That is real progress. I would like to argue for even a little more imagination: the world may have its reasons for being non-Walrasian.