A Note on the Equilibrium Concept in the History of Economics

Abstract

Platonists view the world as being mathematically ordered. Aristotelians consider mathematics at best as an auxiliary tool for the understanding of reality. Platonism also has its mystical and mystifying side. The distinction between Platonism and Aristotelianism is applied here to the history of economics, specifically to the idea of economic interdependence that underlies the general-equilibrium approach. Leaning toward Cartesian rationalism, French economic thought in this matter has tended toward Platonism. British economic thought relating to economic interdependence has reflected the Baconian tradition of empiricism and followed Aristotelian lines. In econometrics and cliometrics Platonism and Aristotelianism converge and form a synthesis.