Economic theory and reality

"Economic Theory and Reality presents Tibor Scitovsky's latest thinking on the relationship between economic theory and economic reality. It focuses in depth on two central themes. The first is Professor Scitovsky's attempt to make economic theory more realistic and thereby more useful; it includes his work on the necessity of asymmetric markets, some market power and righteous behaviour as conditions of a progressive and properly functioning market economy." "The second major theme is the shortcomings of the real-world economy, in particular its failure to maintain macroequilibrium, price stability and full employment. His work on this theme includes examinations of inflexible wages and prices, excessive claims, positional goods, and the impact of second-hand markets on the macroeconomy."--BOOK JACKET.