The Traverse, Equilibrium Analysis and Post-Keynesian Economics

31 Pages Posted: 22 May 2012

See all articles by Joseph Halevi

Joseph Halevi

The University of Sydney - Department of Political Economy; International University College (IUC) of Turin

Neil Hart

University of New South Wales (UNSW)

Peter Kriesler

UNSW Australia Business School, School of Economics

Date Written: May 1, 2012

Abstract

The Traverse refers to the movement of the economy outside equilibrium. It requires a consideration of how an economy may achieve equilibrium, and how it may navigate towards a new one if conditions change. Analysis of these themes, from the classical economists onwards, leads to the conclusion that it is difficult to envisage any useful role for equilibrium theory in the absence of some evidence that there are forces in the economy which propel it to equilibrium, without influencing the position to which the economy is gravitating towards. Complicating factors, emphasised in the post-Keynesian literature, include the existence of path-dependency, hysteresis, cumulative causation and the evolutionary nature of economic change.

Keywords: history of economic thought, post-Keynesian, equilibrium and disequilibrium, path-dependency, hysteresis, cumulative causation, the evolutionary

JEL Classification: B00, B52, D5, E12

Suggested Citation

Halevi, Joseph and Hart, Neil and Kriesler, Peter, The Traverse, Equilibrium Analysis and Post-Keynesian Economics (May 1, 2012). UNSW Australian School of Business Research Paper No. 2012-32, Available at SSRN: https://ssrn.com/abstract=2049653 or http://dx.doi.org/10.2139/ssrn.2049653

Joseph Halevi

The University of Sydney - Department of Political Economy ( email )

Merewether Building (H04)
Sydney, 2006
Australia

International University College (IUC) of Turin ( email )

Piazza Carlo Felice, 18
Torino, 10121
Italy

Neil Hart

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

Peter Kriesler (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

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