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Economics An Introductory Analysis
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Italian Economic Journal. No fewer than three ideas of what it means to have a general theory are involved. The idea of a general theory of global applicability has a powerful appeal to economists. Maynard Keynes sought to justify his theory as the general theory of employment, interest and money, whilst in the postwar period the prestige of general equilibrium theory rested to a considerable extent on its claim to generality. Keynesian economics thus provides an interesting test case to discuss the the relationship between global and local approaches to economic analysis. The main subject of this paper is, however, not Keynes, but Paul Samuelson, the economist who arguably dominated American economics in the and s. As far as many economists were concerned, Foundations of Economic Analysis Samuelson virtually defined how to do economic theory rigorously: it presented the theory of constrained maximisation; it showed how to use methods of linear algebra to derive comparative statics results from such models; it explained how to formulate and analyse economic dynamics; and its appendices developed many of the mathematical techniques that economists needed to know.
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