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Walras’ Law in the Context of Pre-Analytic Visions

Arne Heise

Abstract

Walras’ law is a central tenet of economic theory. For mainstream economics, it is a ‘plausibility check’ for model-building; for heterodox economists, the refutation of Walras’ law is key to understanding Keynes’ revolutionary contribution to a new economic paradigm. The purpose of this short research note is to elaborate on the possibility of a refutation of Walras’ law and to inquire into its preconditions. It will be argued that this can be achieved on the basis of an alternative pre-analytic vision of a genuine monetary economy as foreshadowed by John Maynard Keynes.

Published on 31 Mar 2017 in Economic Thought Vol 6, No 1, 2017