Uploaded July 2026 | Updated September 2026, 2 weeks ago
What do Austrians think of equilibrium? Jonathan Newman's answer is "always and never." Rather than treating equilibrium as an unreachable ideal against which real markets are judged failures — the trap Mises warned against — he walks through a realistic market process asking at each step what has been settled and what remains open. That yields several distinct equilibrium constructs: the plane state of rest that occurs after every single exchange (where markets always clear), the Wicksellian state of rest where competitors' prices converge, and the final state of rest that the economy forever tends toward but never reaches. The payload is a quiet demolition of "sticky price" and "sticky wage" reasoning — and with it, the Keynesian account of depressions.
Recorded at the Mises Institute in Auburn, Alabama, on July 24, 2026.
Mises University is the world's leading instructional program in the Austrian School of economics, and is the essential training ground for economists who are looking beyond the mainstream.
0:00 Intro and Recap: Causal-Realist Price Theory
7:04 Unsold Inventory Is Reservation Demand, Not Excess Supply
11:05 The Wrong Way to Think About Supply and Demand Shifts
12:54 What Austrians Think of Equilibrium: A Tool, Not an Ideal
14:11 Mainstream Equilibrium Concepts
16:12 The Austrian Approach and the Four Constructs
20:17 The Personal and Plane States of Rest: Markets Always Clear
29:05 The Wicksellian State of Rest: Arbitrage and the Law of One Price
33:57 The Final State of Rest: The Elimination of Profit
40:54 The Evenly Rotating Economy
43:27 Summary
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What do Austrians think of equilibrium? Jonathan Newman's answer is "always and never." Rather than treating equilibrium as an unreachable ideal against which real markets are judged failures — the trap Mises warned against — he walks through a realistic market process asking at each step what has been settled and what remains open. That yields several distinct equilibrium constructs: the plane state of rest that occurs after every single exchange (where markets always clear), the Wicksellian state of rest where competitors' prices converge, and the final state of rest that the economy forever tends toward but never reaches. The payload is a quiet demolition of "sticky price" and "sticky wage" reasoning — and with it, the Keynesian account of depressions.
Recorded at the Mises Institute in Auburn, Alabama, on July 24, 2026.
Mises University is the world's leading instructional program in the Austrian School of economics, and is the essential training ground for economists who are looking beyond the mainstream.
0:00 Intro and Recap: Causal-Realist Price Theory
7:04 Unsold Inventory Is Reservation Demand, Not Excess Supply
11:05 The Wrong Way to Think About Supply and Demand Shifts
12:54 What Austrians Think of Equilibrium: A Tool, Not an Ideal
14:11 Mainstream Equilibrium Concepts
16:12 The Austrian Approach and the Four Constructs
20:17 The Personal and Plane States of Rest: Markets Always Clear
29:05 The Wicksellian State of Rest: Arbitrage and the Law of One Price
33:57 The Final State of Rest: The Elimination of Profit
40:54 The Evenly Rotating Economy
43:27 Summary
Find free books, daily articles, podcasts, lecture series, and everything about the Austrian School of Economics at https://Mises.org.
X ► https://x.com/mises/
Facebook ► facebook.com/mises.institute
Instagram ► instagram.com/misesinstitute
SoundCloud ► soundcloud.com/misesmedia
Apple Podcasts ► podcasts.apple.com/us/artist/mises-institute/1280664810
Rumble ► rumble.com/c/c-2212754
Odysee ► odysee.com/@mises
Podcasts ► mises.org/podcasts
