Macroeconomics for a Modern Economy

The modern economy began to supplant the traditional economy in several nations in the latter half of the nineteenth century—and in many more in the latter half of the twentieth. A system where selfemployment and self-finance was typical gave way to a system of companies having various business freedoms and enabling institutions. This was the “great transformation” on which historians and sociologists, as well as business commentators, were to write volumes. The modern economy, where fully adopted, has indeed been transformative for nations 1 —but much less so for economics.