What is the macroeconomic balance

balance

Balance from a methodological point of view


A methodological equilibrium characterizes a steady state in which economic agents have no reason to change their behavior because they have optimally adapted to the relevant data. According to this view, a revision is only carried out again when the "data" changes exogenously.

In evolutionary perspective However, an impulse to act can be triggered at any time by a creative idea or by a new interpretation of the situation or the future (change in expectations) without the external data having changed. There is then a temporary equilibrium that z. B. continuously changed by adjusting expectations. These endogenously determined driving moments limit the usefulness of the equilibrium concept, at least from a prognostic point of view. In a so-called equilibrium of expectations, there are no longer any adjustments of expectations (as a result of expectation errors); such an equilibrium is permanent if the data variables are constant.

Equilibrium in the theoretical sense


In the one determined by equilibrium Economic theory becomes the concept of equilibrium on individuals (Household- and company balance), at the (goods) market level in the sense of the correspondence of planned aggregated supply and planned aggregated demand (Market equilibrium) or on the market system as a whole (general or simultaneous equilibrium in all markets; general equilibrium) is applied. Assuming that all actors have optimally adapted to the strategies of the other actors, which are still considered to be given, there is a so-called. Nash equilibrium in front. A special case exists when market participants in individual markets are rationed in terms of quantity and cannot fully implement their actual plans resulting from an unrestricted optimization approach. If they then adapt their supply or demand plans to the respective rationing barrier, i.e. if they switch to effective plans, this plan revision creates a temporary equilibrium for quantity rationing. This is the neo-Keynesian theory of equilibrium.

In Keynesian macroeconomic total models, equilibrium constellations can occur in which there is simultaneous market equilibrium on the goods, money and securities markets, while a permanent state of underemployment prevails on the labor market. This mix of theoretical and methodological equilibrium is also known as the underemployment equilibrium. Compare macroeconomic total models of closed economies, stable equilibrium states.

In dynamic economic systems, equilibrium is understood to mean the steady state of the system, i.e. the position of rest that results when the variables to be explained no longer change over time.

See also external economic equilibrium, stock equilibrium, foreign exchange market, dynamic equilibrium, current equilibrium, game theory; Economic sociology.