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Value and Capital: Fifty Years Later pp 205–231Cite as

Palgrave Macmillan

Inventories and the Fixprice Method

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Abstract

Value and Capital has laid the modern foundations of dynamic economics. It has had a long-lasting influence on the way economists think of the evolution of the economic system: a sequence of stable temporary (competitive) equilibria. In the current period, given initial stocks, and the way economic agents form their expectations, a stable temporary equilibrium is established. Here stability means that ‘a slight movement away from the equilibrium position should set up forces tending to restore equilibrium’ (p. 62). Then the initial condi tions are modified for the next period (stocks accumulate or decumu late, tastes change, expectations are revised) and this creates the dynamics of the economy.

I am grateful to Lionel Mckenzie, Bernard Salanié and Lars Svensson for helpful comments.

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Author information

Authors and Affiliations

  1. Institut National De La Statistique Et Des Etudes Economiques, France

    Guy Laroque

Authors
  1. Guy Laroque
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Editor information

Lionel W. McKenzie Stefano Zamagni

Copyright information

© 1991 International Economic Association

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Cite this chapter

Laroque, G. (1991). Inventories and the Fixprice Method. In: McKenzie, L.W., Zamagni, S. (eds) Value and Capital: Fifty Years Later. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11029-2_14

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