Microeconomics vs Macroeconomics: What Each Field Studies
Microeconomics vs macroeconomics compares individual choices and markets with economy-wide outcomes such as GDP, inflation, unemployment, growth, and policy.
Economic Theory
Sonnenschein-Mantel-Debreu Theorem: Aggregate Demand Limits
Sonnenschein-Mantel-Debreu theorem analysis shows why rational individual demand does not guarantee stable, unique, or well-behaved aggregate demand.
Existence of Competitive Equilibrium: Fixed Point Logic
Existence of competitive equilibrium explains how fixed point logic proves that market-clearing prices can exist under suitable general equilibrium assumptions.
Walras law: Market Excess Demands Balance
Walras law shows why the value of excess demand across all markets must balance when agents obey budget constraints.
Goodhart’s Law Economics: Why Targeting a Measure Destroys Its Value
Goodhart's Law economics explains why targeting any economic indicator destroys its informational value, from UK monetary aggregates in the 1980s...