“The equilibrium price level is determined at the point where the money market is in equilibrium. The temporary suspension of Walras' Law, far from making economic nonsense, thus appears as the crucial "trick" by which the tatonnement process is decomposed in two parts.
This analysis confirms that for a neoclassical general equilibrium system with neutral money there is indeed a consistent decomposition procedure, based on appropriate compensation principles, permitting the determination of real variables in the real sector while the price level is determined in the monetary sector. However, the amount of intellectual effort which, in the wake of Lange and Patinkin, was devoted to this issue, is entirely out of proportion to its economic significance. The real economic question is not whether a system can be dichotomized, but whether money is neutral.”

—  Jürg Niehans

Source: The theory of money, 1978, p. 12

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Jürg Niehans 5
Swiss economist 1919–2007

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“In figure 3 we show the money and domestic asset market equilibrium schedules for given stocks of each of the assets. Along MM the domestic money market is in equilibrium. Higher interest rates reduce money demand so that equilibrium requires a depreciation and thus a rise in the domestic currency value of foreign assets and - hence wealth. The exchange rate thus plays a balancing role by affecting the valuation of assets.”

Rudiger Dornbusch (1942–2002) German economist

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“L. Walras first formulated the state of the economic system at any point of time as the solution of a system of simultaneous equations representing the demand for goods by consumers, the supply of goods by producers and the equilibrium condition that supply equal demand on every market.”

Gérard Debreu (1921–2004) French economist and mathematician

Arrow, Kenneth J., and Gerard Debreu. " Existence of an equilibrium for a competitive economy http://cowles.econ.yale.edu/P/cp/p00b/p0087.pdf." Econometrica: Journal of the Econometric Society (1954): p. 265

Kenneth Arrow photo

“L. Walras first formulated the state of the economic system at any point of time as the solution of a system of simultaneous equations representing the demand for goods by consumers, the supply of goods by producers and the equilibrium condition that supply equal demand on every market.”

Kenneth Arrow (1921–2017) American economist

Source: 1950s-1960s, "Existence of an equilibrium for a competitive economy." 1954, p. 265

“There is reason for this shift of emphasis from any actual price to a hypothetical 'equilibrium' price. It is usually more interesting to know where a train is going than to know exactly where it is at any moment. The 'equilibrium' position of any price, wage, firm, industry, or system is the position toward which it is tending. The importance of equilibrium analysis, then, is that it enables us to discuss the directions of change. If a train is in New- York and its 'equilibrium' position is in Chicago, we are reasonably confident that the general direction of its motion will be westward, even if it unaccountably decides to travel north for the first hundred and fifty miles.”

Kenneth E. Boulding (1910–1993) British-American economist

Source: 1940s, Economic Analysis, 1941, p. 637-638 (rev. ed. 1947); cited in Macroeconomische theorie ingeleid en voortgezet. Kluwer, 2006. p. 3

Ilya Prigogine photo

“My colleague Paul Glansdorff and I have investigated the problem as to if the results of near-equilibrium can be extrapolated to those of far - from-equilibrium situations and have arrived at a surprising conclusion: Contrary to what happens at equilibrium, or near equilibrium, systems far from equilibrium do not conform to any minimum principle that is valid for functions of free energy or entropy production.”

Ilya Prigogine (1917–2003) physical chemist

Ilya Prigogine (1996) "The End of Certainty: Time, Chaos, and the New Laws of Nature". p. 64. Cited in: Ilya Prigogine http://www.eoht.info/page/Ilya+Prigogine at echt info. By Sadi-Carnot et all., Jan 28 2013.

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“Equilibrium thermodynamics was an achievement of the nineteenth century, nonequilibrium thermodynamics was developed in the twentieth century, and Onsager's relations mark a crucial point in the shift of interest away from equilibrium to non-equilibrium.”

Ilya Prigogine (1917–2003) physical chemist

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“The primary fact is that all isolated state-determined dynamic systems are selective: from whatever state they have initially, they go towards states of equilibrium. These states of equilibrium are always characterised, in their relation to the change-inducing laws of the system, by being exceptionally resistant.”

W. Ross Ashby (1903–1972) British psychiatrist

Source: Design for a Brain: The Origin of Adaptive Behavior (1952), p. 238

“[The equilibrium model describes systems] which, in moving to an equilibrium point, typically lose organization, and then tend to hold that minimum level within relatively narrow conditions of disturbance.”

Walter F. Buckley (1922–2006) American sociologist

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Ragnar Frisch photo

“An important object of the Journal should be the publication of papers dealing with attempts at statistical verification of the laws of economic theory, and further the publication of papers dealing with the purely abstract problems of quantitative economics, such as problems in the quantitative definition of the fundamental concepts of economics and problems in the theory of economic equilibrium.
The term equilibrium theory is here interpreted as including both the classical equilibrium theory proceeding on the lines of Walras, Pareto, and Marshall, and the more general equilibrium theory which is now beginning to grow out of the classical equilibrium theory, partly through the influence of the modern study of economic statistics. Taken in this broad sense the equilibrium problems include virtually all those fundamental problems of production, circulation, distribution and consumption, which can be made the object of a quantitative study. More precisely: The equilibrium theory in the sense here used is a body of doctrines that treats all these problems from a certain point of view, which is contrasted on one side with the verbal treatment of economic problems and on the other side with the purely empirical-statistical approach to economic problems”

Ragnar Frisch (1895–1973) Norwegian economist

Frisch (1927). as quoted in: Bjerkholt, Olav, and Duo Qin. A Dynamic Approach to Economic Theory: The Yale Lectures of Ragnar Frisch. Routledge, 2010: About "Oekonometrika"
1920

“What in the whole denotes a causal equilibrium process, appears for the part as a teleological event.”

Ludwig von Bertalanffy (1901–1972) austrian biologist and philosopher

Bertalanffy (1929, p. 306) cited in: Cliff Hooker ed. (2011) Philosophy of Complex Systems. p. 190
1920s

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