The Validity of Walras’ Law in a Monetary Exchange Economy: Money, Prices and the Integration of Monetary and Value Theory

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Walras’ Law is one of the most important tenets of Neo-liberal economics. It is supposed to be a Tautological Identity according to which disequilibrium in market economies has a compensatory nature. Hence, disequilibrium in any market would imply an opposite imbalance somewhere else in the system. However, in monetary systems commodities do not buy commodities, i.e. they are not substitutes of money. When budget constraints take into account the realization problem associated with the violation of the Classical Gross Substitution Axiom, disequilibrium turns out to be non-compensatory. This paper shows that Walras’ Law does not always hold.
La Ley de Walras es uno de los principios más importantes de economía Neo-liberal. Se supone que es una Identidad Tautológica en la que en economías de mercado el desequilibrio tiene una naturaleza compensatoria. Por tanto, el desequilibrio en cualquier mercado implicaría un desequilibrio en otra parte del sistema. Sin embargo, en los sistemas monetarios las mercancías no se intercambian por mercancías, es decir, no son substitutas del dinero. Cuando las restricciones presupuestarias tienen en cuenta el problema de la realización asociado al no cumplimiento del Axioma de Substitución Bruta Clásico, resulta que el desequilibrio no es compensatorio. Así, este artículo demuestra que La ley de Walras no siempre cumple.
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