ABSTRACT
In most current macro-economic models, whether static or dynamic, equilibrium is explicitly or implicitly defined in terms of a stable price level. Even when the equilibrium is not a static one in the strict sense, in that it is thought of as occurring in a progressive economy in which the equilibrium is shifting more or less gradually through time as the exogenous parameters of the model change or as growth takes place within the model, some sort of a stable price level seems almost always to be taken for granted as part of the equilibrium picture.
