Scribd
Upload
150 views2 pages

Leon Walras

Léon Walras was a French economist known for his foundational work in general equilibrium theory and the Marginalist school of economics. He emphasized the mathematical nature of economics and made significant contributions to the theory of money, asserting that its value is linked to purchasing power. Additionally, Walras advocated for a centrally planned socialist economy, arguing it could be more efficient than capitalism if guided by general equilibrium principles.

Uploaded by

Vinin Vijayan rv
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
150 views2 pages

Leon Walras

Léon Walras was a French economist known for his foundational work in general equilibrium theory and the Marginalist school of economics. He emphasized the mathematical nature of economics and made significant contributions to the theory of money, asserting that its value is linked to purchasing power. Additionally, Walras advocated for a centrally planned socialist economy, arguing it could be more efficient than capitalism if guided by general equilibrium principles.

Uploaded by

Vinin Vijayan rv
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

LEON WALRAS

* Léon Walras (1834-1910) was a French economist who made


significant contributions to the development of general equilibrium
theory, which is a cornerstone of modern microeconomics.

* He is widely regarded as one of the founders of the Marginalist


school of economics, which also included William Stanley Jevons and
Carl Menger.

* Walras believed that economics should be a mathematical science,


and he developed a system of equations to describe the behavior of
consumers, firms, and markets in a general equilibrium framework. •
His approach was revolutionary at the time, as most economists had
focused on studying individual markets in isolation.

* Walras also made important contributions to the theory of money


and the quantity theory of money.

* He argued that the value of money is determined by its purchasing


power, and that changes in the money supply can have significant
effects on prices and economic activity.

* Another important contribution of Walras was his advocacy of a


socialist economy based on rational planning. He believed that a
centrally planned economy could be more efficient than a capitalist
economy, as long as prices were set based on the principles of general
equilibrium theory.
Contribution

* General Equilibrium Theory: Walras developed a system of


equations to describe the behavior of consumers, firms, and markets
in a general equilibrium framework. His approach was revolutionary at
the time, as most economists had focused on studying individual
markets in isolation. Walras' work laid the foundation for modern
microeconomics and is still widely studied today.
* Marginalism: Walras was one of the founders of the Marginalist
school of economics, which emphasized the importance of marginal
analysis in economic decision-making. He believed that economic
value is determined by the marginal utility of goods and services,
which is the additional satisfaction that consumers derive from
consuming one more unit of a good or service.

* Theory of Money: Walras made important contributions to the


theory of money and the quantity theory of money. He argued that
the value of money is determined by its purchasing power, and that
changes in the money supply can have significant effects on prices and
economic activity.

* Socialism: Walras advocated for a socialist economy based on


rational planning. He believed that a centrally planned economy could
be more efficient than a capitalist economy, as long as prices were set
based on the principles of general equilibrium theory

You might also like