Quote: On Tendencies

Entrepreneurs act in a way that eliminates profits, because they take advantage of divergences between market prices and equilibrium prices. Theoretically, this elimination of profits will lead to an equilibrium. The word “tendency,” in this case, is meant to describe a relationship. But, it’s not meant in the way that Lachmann and Mises-detractors use it, which is that the economy moves (tends) towards equilibrium. In a world where the data are constantly changing, there is no trend towards equilibrium.

via On Tendencies | Economic Thought.

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