Equilibrium
in sentence
394 examples of Equilibrium in a sentence
As originally formulated, the theory of perfect competition--of the natural
equilibrium
of supply and demand--assumed perfect knowledge, homogeneous and easily divisible products, and a large enough number of market participants to ensure that no single participant could influence the market price.
If we look at the behavior of financial markets, we find that instead of tending toward equilibrium, prices continue to fluctuate relative to the expectations of buyers and sellers.
There are prolonged periods when prices are moving away from any theoretical
equilibrium.
Even if they eventually show a tendency to return, the
equilibrium
is not the same as it would have been without the intervening period.
Yet the concept of
equilibrium
endures.
In the absence of equilibrium, the contention that free markets lead to the optimum allocation of resources loses its justification.
ECONOMIC STABILITYEconomic theory has created an artificial world in which the participants' preferences and the opportunities confronting them are independent of each other, and prices tend toward an
equilibrium
that brings the two forces into balance.
Social Darwinism is based on an outmoded theory of evolution, just as the
equilibrium
theory in economics is taking its cue from Newtonian physics.
I blame the prevailing attitude, which holds that the unhampered pursuit of self-interest will bring about an eventual international
equilibrium.
Thus, an
equilibrium
of sorts between constitutional review and a concern not to cause excessive legal instability has been found.
Even if the US economy exceeds potential growth over the next year, the effects of fiscal stimulus will fade by the second half of 2019, and the Fed will overshoot its long-term
equilibrium
policy rate as it tries to control inflation; thus, achieving a soft landing will become harder.
And, because the current bout of high unemployment is self-reinforcing, once the
equilibrium
is broken for a while, the economy could move to a higher-employment
equilibrium
permanently, without the need for any further government support.
Its wages and prices must lag behind its competitors’ for years, while its economy goes through an extended slump until a new
equilibrium
is found.
The history of legislative reform is substantially a punctuated equilibrium, with long periods of time during which public apathy prevents any progress, interrupted by scandals that suddenly make progress possible.
So the positive productivity shock should have raised the return to capital and, hence,
equilibrium
real interest rates.
Economies gravitate naturally to a full-employment equilibrium, and, after a shock, do so fairly quickly if not impeded by misguided government action.
So we will remain in a state of “under-employment equilibrium” until policy in the UK and the eurozone is changed (and assuming that policy in the US does not become worse).
Wherever one looks, using Marshall’s toolkit, one sees economic
equilibrium
pulling things back to normal, compensating for and attenuating the effects of shocks and disturbances.
Marshall’s economics – the
equilibrium
economics of comparative statics, of shifts in supply and demand curves, and of accommodating responses – is of almost no help in accounting for this.
The new government’s fragile
equilibrium
only reinforces this sober interpretation.
Microeconomics for AllTOULOUSE – For the last half-century, the world’s leading universities have taught microeconomics through the lens of the Arrow-Debreu model of general competitive
equilibrium.
The model, formalizing a central insight of Adam Smith’s The Wealth of Nations, embodies the beauty, simplicity, and lack of realism of the two fundamental theorems of competitive equilibrium, in contrast to the messiness and complexity of modifications made by economists in an effort to capture better the way the world actually functions.
The Russian government’s reluctance to fight corruption and strengthen the country’s legal institutions reflects a perverse – yet stable – political
equilibrium.
Fully general frameworks, such as economists’ beloved Arrow-Debreu model of general equilibrium, are so broad and encompassing that they are totally unhelpful for real-world explanation or prediction.
Politics abhors
equilibrium
as much as nature abhors a vacuum; and undoubtedly, tensions within the coalition, as well as outside it, will surface.
One exception is the Great Depression, which Prescott says was caused by real wages far exceeding
equilibrium
values, owing to President Herbert Hoover’s extraordinary pro-labor, pro-union policies.
But with the geopolitical rise of emerging economies, especially in Asia, that order will have to achieve a new equilibrium, or global instability will persist.
Uncoordinated monetary expansion does not even necessarily leave the world in a worse
equilibrium.
Myopic actions on both sides have helped entrench a longer-term pattern of behavior that only makes it harder to move away from today’s unsustainable
equilibrium.
We need fewer
equilibrium
business-cycle theorists and more old-fashioned Keynesians and monetarists.
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