 Equilibrium and Stability in Classical TheoryD. J. Harris Chapter 5 in Nicholas Kaldor and Mainstream Economics, 1991, pp 88-100 from Palgrave Macmillan Abstract: Abstract Kaldor begins his paper of 1972 with a resounding blast against what he calls ‘equilibrium economies’. The opening paragraph is worth quoting in full for its candid irreverence: The purpose of my lecture today is to explain why, in my view, the prevailing theory of value — what I called, in a shorthand way, ‘equilibrium economics’ — is barren and irrelevant as an apparatus of thought to deal with the manner of operation of economic forces, or as an instrument for non-trivial predictions concerning the effects of economic changes, whether induced by political action or by other causes. I should go further and say that the powerful attraction of the habits of thought engendered by ‘equilibrium economics’ has become a major obstacle to the development of economics as a science — meaning by the term “science” a body of theorems based on assumptions that are empirically derived (from observations) and which embody hypotheses that are capable of verification both in regard to the assumptions and the predictions. (Kaldor, 1972, p. 1237) Keywords: Classical Theory; Production Price; Adjustment Process; Price Deviation; Fairy Tale (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-10947-0_5 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-10947-0_5 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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