MECHANISM Si commodity, with each market in turn described by (a) supply conditions, (b) demand conditions, and (c) clearing of market or equilibrium conditions, of which one is redundant (Wairas' law).The main advantage of the general equilibrium framework is that it insures a systematic and, at least initially, symmetrical treatment of all markets.'For the commodity market, the demand conditions are described by equations (i) to (i); the supply conditions by (4b) and the clearing conditions by (7).In the labor market the supply is given by ( 6), to be reviewed more closely below; the demand by ( 5); and market clearing by (8).The remaining two markets are described under the next heading, 2.2. Explicit treatment of the bond market and

In recent years and especially since the onset of the current depression, the economics profession and the lay public have heard a great deal about the sharp conflict between “monetarists and Keynesians” or between “monetarists and fiscalists.” The difference between the two “schools” is generally held to center on whether the money supply or fiscal variables are the major determinants of aggregate economic activity, and hence the most appropriate tool of stabilization policies.