Groundbreaking model unlocks economic equilibrium, transforming financial landscapes worldwide.
The article explores the current state of general equilibrium modelling in economics. It discusses how this approach helps understand how prices, production, savings, and interest rates are all connected. The main focus is on the importance of Walras' proposition and the advancements made in modeling asset markets within this framework. While progress has been made, there are still limitations that need to be addressed for better real-world applications.