Theoretical models for the study of the ancient Egyptian economy have been discussed for more than two decades with Polanyi's system used to deny the relevance of modern economic theory. In this paper the relevance of the Keynesian model as a means of understanding the specific character of the Egyptian economy introduces an examination of the analytic properties of Polanyi's system, as a theoretical framework and as used by Egyptologists. The implications of the resulting suggestion that Egypt was modern - both economically and intellectually - are then discussed in terms of our understanding of human history.