This collection of essays presents a stimulating and challenging examination of the nature of institutional adjustment, its history and its future, its problems and its purposes. The focus is on the pioneer work done by the late Clarence Ayres, of the University of Texas, in the study of the processes of change and growth and the nature of modern industrialized economies. The opening essay, a provocative discussion of “The Theory of Institutional Adjustment,” is Ayres’s contribution.

The succeeding essays examine several aspects of institutional adjustment:

Kenneth H. Parsons discusses “The Institutional Basis of a Progressive Approach to Economic Development.”
Wendell Gordon considers “Orthodox Economics and Institutionalized Behavior.”
Gunnar Myrdal brings the breadth of his knowledge of many different economies and the institutional contexts within which they operate to a study of the “Adjustment of Economic Institutions in Contemporary America.”
Forest Hill provides a historical survey of the process of growth and change in his essay “The Government and Institutional Adjustment: The American Experience.”
Wolfgang Friedmann discusses some legal aspects of the subject in “Creative Legal Interpretation and the Process of Institutional Adjustment.”
Rounding out this collection of essays, Morris A. Copeland and Gardiner C. Means offer proposals for guiding adjustment and change in specific areas: “Implementing the Objective of Full Employment in Our Free Enterprise System” and “Monetary Institutions to Serve the Modern Economy.”

These essays were originally read at a conference sponsored by the Department of Economics of the University of Texas at Austin in April and May of 1965.

About the Author

Carey C. Thompson (1908–1998) was Professor of Economics at the University of Texas at Austin.

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