Must-Read: David Glasner: Romer v. Lucas: “In… 1959… Arrow noted that the theory of competitive equilibrium has no explanation of how equilibrium prices are actually set… …All agents in a general equilibrium being… price takers, how is it that a new equilibrium price is ever arrived at following any disturbance?… Arrow… offered the suggestion that… … Continue reading Must-Read: David Glasner: Romer vs. Lucas