ABSTRACT
This chapter explores the meanings of ‘equilibrium’ in economics, distinguishing salient appropriate and inappropriate modes of deployment of the concept. I examine a specific instance of the deployment of the concept of equilibrium by a neoclassical writer – Robert Lucas – and conclude that the concept has been hypostatised, substituting an aspect for the whole. The temporary is made permanent, and process subordinated to stasis, with apologetic results. Under far-from-equilibrium conditions, equilibrium is not even an approximate description of the condition of the system, but an abstraction – something which might obtain should a process under consideration run to its conclusion. The order of the system is not an equilibrium, but an ephemeral balance of forces, destined to be disturbed by the passage of time. I suggest that the hypostatisation of equilibrium exemplifies the contrast between formal and dialectical modes of thought, and that the heterodoxy can make its most telling contribution by applying a dialectical notion of equilibrium.
