Comments on: Quote of the Day http://chicagoboyz.net/archives/3777.html Some Chicago Boyz know each other from student days at the University of Chicago. Others are Chicago boys in spirit. The blog name is also intended as a good-humored gesture of admiration for distinguished Chicago boys including those pictured above. Thu, 24 May 2012 19:28:20 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: cb http://chicagoboyz.net/archives/3777.html/comment-page-1#comment-28247 cb Mon, 19 Dec 2005 21:15:46 +0000 http://chicagoboyz.net/archives/003777.html#comment-28247 Economics is a social science. I find it doubtful that there is any such state as an equilibrium, or natural state, for that matter. We're not mechanical systems. Do you think econometricians will ever find a Grand Unified Theory of Economics? Economics is a social science. I find it doubtful that there is any such state as an equilibrium, or natural state, for that matter. We’re not mechanical systems. Do you think econometricians will ever find a Grand Unified Theory of Economics?

]]> By: Steven Den Beste http://chicagoboyz.net/archives/3777.html/comment-page-1#comment-28246 Steven Den Beste Tue, 06 Dec 2005 22:04:38 +0000 http://chicagoboyz.net/archives/003777.html#comment-28246 Back in the naive old days when people first started developing system theory it used to be an article of faith that all natural systems eventually found a stable point of equilibrium. It's now know that for a lot of systems the natural state is oscillation. I've long believed that oscillation is the natural state for free markets, and that's the underlying source of the boom/bust cycle. Back in the naive old days when people first started developing system theory it used to be an article of faith that all natural systems eventually found a stable point of equilibrium. It’s now know that for a lot of systems the natural state is oscillation.

I’ve long believed that oscillation is the natural state for free markets, and that’s the underlying source of the boom/bust cycle.

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