“There is no penumbra of approbation round the theory of equilibrium. Equilibrium is just equilibrium.” Discuss.
Yes, this was a question we had in our Economics paper the year I joined the BA (Hons) Economics course. The answer is clear and simple: it is like saying 2+2=4 whether you like it or not : there is nothing you can do about it.
The quote is from Lionel Robbins’ book based on his lecture “ The Nature and Significance of Economics”. For Robbins, this may have been an esoteric way of bringing home a point to the Cambridge school, that economics is concerned with cause and effect , with actions and outcomes , with scarce resources that have to be deployed to achieve chosen ends ; that it is not the business of economists to give prescriptions. Yet that statement , out of context, sounds mystifying and non-communicative.
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