This essay poses Walras＇s theory of price mechanism in its merits and limitations. Walras proposed two laws as conditions for general equilibrium, namely： （1） the law of the variation of equilibrium prices, a subj...This essay poses Walras＇s theory of price mechanism in its merits and limitations. Walras proposed two laws as conditions for general equilibrium, namely： （1） the law of the variation of equilibrium prices, a subjective condition; and （2） the law of the establishment of equilibrium prices, an objective condition. Walras jointed both laws in order to develop his law of supply and demand. This paper offers a formal Walrasian approximation in terms of the Lyapounov＇s function, taking the diagonal dominant hypothesis as departure point, rediscovered almost a century after it was originally proposed by Walras. The paper concludes with critical reflection concerning the idea of equilibrium economics as medium of social cohesion.展开更多
As a result of the fact that the stabilization program put into force in 1978 and 1979 in the Economy of Turkey could not be efficiently implemented due to the political instability and weak governments, a need to dra...As a result of the fact that the stabilization program put into force in 1978 and 1979 in the Economy of Turkey could not be efficiently implemented due to the political instability and weak governments, a need to draft a new stabilization program emerged. The stabilization program of January 24th, 1980 was prepared in this environment. This is a program which includes the structural transformations in the long term as well as the aims foreseen to be realized in the short term. The program adopted the implementation of significant changes in the structure of the economy and the price mechanism in the market which becomes the only guide as the basic principle. The difference from the previous programs is an economic development program intending to provide a very permanent and structural change in the economy rather than to realize the short-term goals. With the decisions, a large devaluation was implemented, the exchange rate policy and importation were liberated, foreign capital and exportation were encouraged, the subsidies with the exception of energy, fertilizer, and transportation were removed, restrictions were imposed on the support purchases in agricultural products, and the overseas contracting services were supported. There are two structural objectives desired to be performed in the long term, shrinking the public sector and removing the intervention in the markets. The basic philosophy is to decrease the state intervention to the minimum level in the economy and to bring functionality to the market economy and to validate the price mechanism. In this paper, the stabilization decisions in the economy of Turkey belonging to pre- and early post-January 24th period will be comparatively analysed.展开更多
文摘This essay poses Walras＇s theory of price mechanism in its merits and limitations. Walras proposed two laws as conditions for general equilibrium, namely： （1） the law of the variation of equilibrium prices, a subjective condition; and （2） the law of the establishment of equilibrium prices, an objective condition. Walras jointed both laws in order to develop his law of supply and demand. This paper offers a formal Walrasian approximation in terms of the Lyapounov＇s function, taking the diagonal dominant hypothesis as departure point, rediscovered almost a century after it was originally proposed by Walras. The paper concludes with critical reflection concerning the idea of equilibrium economics as medium of social cohesion.
文摘As a result of the fact that the stabilization program put into force in 1978 and 1979 in the Economy of Turkey could not be efficiently implemented due to the political instability and weak governments, a need to draft a new stabilization program emerged. The stabilization program of January 24th, 1980 was prepared in this environment. This is a program which includes the structural transformations in the long term as well as the aims foreseen to be realized in the short term. The program adopted the implementation of significant changes in the structure of the economy and the price mechanism in the market which becomes the only guide as the basic principle. The difference from the previous programs is an economic development program intending to provide a very permanent and structural change in the economy rather than to realize the short-term goals. With the decisions, a large devaluation was implemented, the exchange rate policy and importation were liberated, foreign capital and exportation were encouraged, the subsidies with the exception of energy, fertilizer, and transportation were removed, restrictions were imposed on the support purchases in agricultural products, and the overseas contracting services were supported. There are two structural objectives desired to be performed in the long term, shrinking the public sector and removing the intervention in the markets. The basic philosophy is to decrease the state intervention to the minimum level in the economy and to bring functionality to the market economy and to validate the price mechanism. In this paper, the stabilization decisions in the economy of Turkey belonging to pre- and early post-January 24th period will be comparatively analysed.
