This book analyzes the evolution of the approach of dynamic equilibrium between the two world wars. Focusing on its intellectual history, it describes precisely how the central idea of equilibrium dynamics was advanced and mathematically formulated in the years of high theory in an international context, explaining clearly the creation of economic dynamics in the context of its historical development.
Paretian economists were characterized by a strong mathematical orientation, and they emphasized parallels with the natural sciences, sharing the idea that only general equilibrium theory constituted the methodological canon with which to construct a valid economic theory. The eight chapters in this volume explore the history of the Paretian tradition, and its impact on economic thinking in Italy and the USA in the 1920s and 1930s. Particular attention is given to key Paretian thinkers such as Luigi Amoroso, Giulio La Volpe and Eraldo Fossati, the contribution of each being explored in depth, whilst other chapters take a thematic approach, setting Paretian economic thought in the wider context of the period.
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