Lachmann L. Macro-economic Thinking and the Market Economy. An essay on the neglect of the micro-foundations and its consequences

The Institute of Economic Affairs, 1973. — 54 p.A multitude of perspectives
The 'Cambridge' and 'neo-classical' schools
Assumption of macro-equilibrium
The 'Neo-Ricardian' Counter-Revolution
Lip-service to micro-foundations
Salvation by econometrics?
Macro-formalism adopted by both schools
The Ricardian shadow
B. A Brief History of the Controversy
Stages
Competition implies varying rates of profit
Long-run equilibrium is unattainable
Inter-temporal exchange rate
Solow's 'social rate of return
Planner's approach to investment
Profits are a phenomenon of disequilibrium
Micro-foundation of profits
Rate of profit/rate of interest controversy
One equilibrium rate (neo-classical school)
Distinction between the two rates (Cambridge School)
Absurdity of the 'normal rate of profit' concept
Politicians and the growth rate
Gassel's idea of the 'uniformly progressive economy'
Growth and macro-formalism
Not all plans can succeed
No room for individual expectations in macroeconomics
The Cambridge 'golden age'
Malinvestment inevitable in economic growth
Equilibrium growth is a misconception
Dangerous thoughts
Technical progress in macro-economics
Learning by doing
Technical progress is unpredictable
Markets are 'the final arbiter'
Incomes policy
Economic growth
Technical progress
Main conclusions
Macro-aggregates
Monetary policy
Cambridge School
Neo-classical School
Labour, capital, and expectations
Furter reading