Money and General Equilibrium Theory

Taking general equilibrium theory to be the model introduced by its founder, the topic of money and general equilibrium theory is as old as the subject itself. In the Preface to the fourth edition of the Elements, Walras wrote: ‘Chiefly, however, it was my theory of money that underwent the most important chnges as a result of my research on the subject from 1876 to 1899.’