Download or read book The General Theory of Transformational Growth written by Edward J. Nell and published by Cambridge University Press. This book was released on 1998-07-13 with total page 816 pages. Available in PDF, EPUB and Kindle. Book excerpt: For the past century, economic analysis has been wedded to the idea of equilibrium, in spite of the evident fact that most economic relationships are in flux. The theory of transformational growth in this work replaces equilibrium with history. The role of the market is not to allocate resources, but to generate innovations, which are "selected" by competition in an evolutionary process. These innovations in turn change the way markets work and how they adjust, thus creating new problems and new kinds of pressures to innovate. The core relationships provide the foundations for a theory of monetary circulation, which makes possible a revised Keynesian approach, based on Classical foundations.