Once upon a time, macroeconomics was a field organized around money and the equation of exchange, as in Fisher 1911. Today, the field is organized instead around finance and the intertemporal Euler equation. This article tells the story of how we moved from then to now, a story that revolves around the key role played by Jacob Marschak and the rise of monetary Walrasianism.
Perry Mehrling; A Tale of Two Cities. History of Political Economy 1 June 2010; 42 (2): 201–219. doi: https://doi.org/10.1215/00182702-2010-001
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