BOULDING,KENNETH RECONSTRUCTION OF MACROECONOMICS

Boulding's reconstruction of macroeconomics provides a ''microfoundati on'' based on liquidity preference theory, a balance sheet approach, a nd a process of homeostasis. These microfoundations are consistent wit h his aggregate theory and avoid fallacies of composition-such as the paradox of thrift-as well as the ''adding up'' problems of marginal pr oductivity theory. His distribution theory links income shares to the determinants of employment and output and the conditions of equilibriu m of saving and investment. His definitions provide clear alternatives to the NIPA definitions adopted in ''Keynesian'' theory. He provides an alternative view of fiscal and monetary policies that will not prov e to be impotent in the face of the ongoing conservative counterrevolu tion. Indeed, his theories are quite close to the modern Post-Keynesia n understanding of ''endogenous money,'' the deficit-growth relation, and the investment-saving connection, while his policy recommendations are often consistent with those of Post-Keynesians.