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A great many of the most important developments in modern economics were first revealed in the pages of Econometrica. This selection of readings from that journal is the third in a series and contains its editors' choice of the best articles in the general area of macroeconomics and capital theory that appeared in issues dating from 1935 to 1966. A broad range of topics is covered in the 27 articles selected in order to indicate the general extent of the field. A few of the articles were microeconomic in their original intent but have a clear influence on later macroeconomic theory.