From my general readings/research there are three Austrian equilibrium prices:
I’m a little confused on what separates the definitions between plain state of rest, general equilibrium, and final state of rest. On page 116 of MES, Rothbard defines the equilibrium price as “where supply equals demand.” This definition is consistent with the typical neoclassical equilibrium that is commonly portrayed by S/D graphs, i.e, the price defined by the intersection between the two curves that sellers come to through the elimination of shortages and surpluses (this is also how Rothbar…
So, in conclusion, from what I’ve dug up, it seems that the Austrian equilibrium states are:
PSR-“equilibrium” position after every transaction. The common prices we see on the market everyday.
WSR-the typical QS=QD prices we see on neoclassical graphs. The price that would result if, utility scales held constant, the market would tend to as people abitrage and take advantage of the un-wicksteedian equilibrium prices (they bring the market into QS=QD equilibrium.
FSR-the price that is never realized in the market. After the WSR is acheived, the FSR would be the price (it could be the same, but most likely not), that would occur if the entire production structure could adjust to the one market change and a given demand curve.
ERE-the economy where all prices are FSR prices.
Equilibrium is a very useful concept when using the ERE as an imaginary construct to draw out deductions. In the real world though, the Austrians emphasis the markets’ constantly changing data and disequilibrium.