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So, I was talking with a professor of mine the previous day, after a question my friend asked about "what's after the long-run". And yes, what you understood about "after" is right, he meant about time. Actually, it may seem stupid, that's what I thought myself. Anyway, as the conversation went on we ended up talking about the short/long run. My friend was supporting that the long run is a constract of our imagination. We will never achieve equilibrium. Not in any market, much less an equilibrium in all markets simultaneously. My professor had more or less the same opinion. After he explained that there is no "after" after the long run, he said that the long run is when we end with these continuous adjustments, which never end. My opinion though, was that we temporary achieve equilibrium. But there is a problem there, we don't know when we achieve that equilibrium. As my professor said, the adjustments are continuous so even if we achieve equilibirium we won't understand it. I mean at least in a microeconomic level it is highly possible to balance, for example, our income. To distribute our income in such way that will maximize our utility. To summarise, my opinion is that, sometimes, we are being in the long run,while my professor/friend are suppoorting that we are always in the short run, no exceptions.
What do you believe? Do we ever achieve equilibrium? Is there a long run period? Was Kaynes right when he was saying "in the long run we are all dead"?
PS. Sorry if this is the wrong section, you may transfer it if it is not. I'm sorry if a kind of this thread has been discussed here before. I just signed up.
Originally Posted by shlunka
