The Proof of the Original Say's Law

Abstract

This paper shows that Jean-Baptiste Say has conveyed two understandings of Say’s law, a wrong one and a correct one. The wrong one is the generally understood one, but also widely misunderstood. The correct one does not require barter trade, does not give up money, does not have equilibrium or unemployment. The original Say’s law is actually the original Walras’ law.

Keywords: Microeconomics, Say’s Law, Walras’ Law

JEL Classification: D21, D51