Editing General equilibrium theory (section)

===Keynesian and Post-Keynesian===
[[Keynesian economics|Keynesian]] and [[Post-Keynesian economics|Post-Keynesian]] economists, and their [[underconsumption]]ist predecessors criticize general equilibrium theory specifically, and as part of criticisms of neoclassical economics generally. Specifically, they argue that general equilibrium theory is neither accurate nor useful, that economies are not in equilibrium, that equilibrium may be slow and painful to achieve, and that modeling by equilibrium is "misleading", and that the resulting theory is not a useful guide, particularly for understanding of [[economic crises]].<ref>{{cite web |url=http://www.debtdeflation.com/blogs/2009/05/04/debtwatch-no-34-the-confidence-trick/ |title=Debtwatch No 34: The Confidence Trick |first=Steve |last=Keen |date=May 4, 2009 }}</ref><ref>{{cite web |url=http://www.debtdeflation.com/blogs/2008/11/30/debtwatch-no-29-december-2008/ |title=DebtWatch No 29 December 2008 |first=Steve |last=Keen |date=November 30, 2008 }}</ref><!-- The purpose of these references is to show that these quotes are taken to refer to general equilibrium theory. --><!-- Quotes used to demonstrate the range of criticisms. -->
{{quote|Let us beware of this dangerous theory of equilibrium which is supposed to be automatically established. A certain kind of equilibrium, it is true, is reestablished in the long run, but it is after a frightful amount of suffering.|[[Simonde de Sismondi]], ''New Principles of Political Economy,'' vol. 1, 1819, pp. 20-21.}}
{{quote|The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is flat again.|[[John Maynard Keynes]], ''A Tract on Monetary Reform,'' 1923, ch. 3}}
{{quote|It is as absurd to assume that, for any long period of time, the variables in the economic organization, or any part of them, will "stay put," in perfect equilibrium, as to assume that the Atlantic Ocean can ever be without a wave.|[[Irving Fisher]], ''The Debt-Deflation Theory of Great Depressions,'' 1933, p. 339}}

[[Robert Clower]] and others have argued for a reformulation of theory toward [[Disequilibrium macroeconomics|disequilibrium analysis]] to incorporate how monetary exchange fundamentally alters the representation of an economy as though a [[barter]] system.<ref>• Robert W. Clower (1965). "The Keynesian Counter-Revolution: A Theoretical Appraisal," in [[Frank Hahn|F.H. Hahn]] and F.P.R. Brechling, ed., ''The Theory of Interest Rates''. Macmillan. Reprinted in Clower (1987), ''Money and Markets''. Cambridge. [http://www.cambridge.org/catalogue/catalogue.asp?isbn=0521335604 Description] and [https://books.google.com/books?id=7CQ4AAAAIAAJ&q=robert+clower+monetary preview] via scroll down.
pp. [https://books.google.com/books?id=7CQ4AAAAIAAJ&dq=%22The+Keynesian+Counter+Revolution%3A+A+Theoretical+Appraisal%22&pg=RA1-PA34 34-58.]<br/>&nbsp; • _____ (1967). "A Reconsideration of the Microfoundations of Monetary Theory," ''Western Economic Journal'', 6(1), pp. [https://web.archive.org/web/20200308210419/https://www.ssc.uwo.ca/economics/grad/533b-001/Notes/Clower_1967.pdf 1–8] (press '''+''').<br/>&nbsp; • _____ and [[Peter Howitt (economist)|Peter W. Howitt]] (1996). "Taking Markets Seriously: Groundwork for a Post-Walrasian Macroeconomics", in David Colander, ed., ''Beyond Microfoundations'', pp. [https://books.google.com/books?id=1FuhaZkuBZoC&dq=%22Taking+Markets+Seriously%22+clower&pg=PA21 21–37.]<br/>&nbsp; • Herschel I. Grossman (1971). "Money, Interest, and Prices in Market Disequilibrium," ''Journal of Political Economy'',79(5), p [https://www.jstor.org/stable/1830266 p. 943]–961.<br/>&nbsp; • Jean-Pascal Bénassy (1990). "Non-Walrasian Equilibria, Money, and Macroeconomics," ''Handbook of Monetary Economics'', v. 1, ch. 4, pp. 103-169. Table of [https://archive.today/20130202034528/http://www.sciencedirect.com/science/article/B7P60-4FKY4SC-7/2/6be27fa8a177dcda4d4346123724cff4 contents.]<br/>&nbsp; • _____ (1993). "Nonclearing Markets: Microeconomic Concepts and Macroeconomic Applications," ''Journal of Economic Literature'', 31(2), pp. [http://www.pse.ens.fr/benassy/wdocuments/Benassy1993JEL.pdf 732–761] {{Webarchive|url=https://web.archive.org/web/20110516150053/http://www.pse.ens.fr/benassy/wdocuments/Benassy1993JEL.pdf |date=2011-05-16 }} (press '''+''').<br/>&nbsp; • _____ (2008). "non-clearing markets in general equilibrium," in ''[[The New Palgrave Dictionary of Economics]]'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_N000153&q=clower&topicid=&result_number=9 Abstract.]</ref>