Perelman, Michael wrote: > I don’t teach equilibrium theory. I use the demonstration to show what the > system cannot converge to equilibrium – because the target moves faster than > any possible adjustments.
I think it's useful to talk about equilibrium in a simple supply and demand framework, but only with the warning that the real world is often more complicated and dynamic. After all, Marx used supply and demand (without the graphs), seeing transitory equilibria as moving around the "centers of gravity" set by prices of production (which represent longer-term equilibria). In general, the world of capitalism is dynamic and never attains equilibrium (except for short-lived periods). But it's useful to have some sense of what equilibrium would be if it were attained, as with Marx's volume II reproduction schemes. Equilibrium concepts give us a benchmark to compare the real-world to. (Of course, equilibrium is not a normative concept: an equilibrium state can be bad.) Also, sometimes equilibrium concepts tell us about "centers of gravity" (as with Marx's view of price fluctuations). Even though the Moon never gets to the center of gravity of its fluctuations, i.e., the Earth (thank the gods!), knowing the center helps understand its movement (along with other centers of gravity like the Sun). -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
