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* PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - ~ 
going to react? The answer depends on the particular institu- 
tions that the system has adopted. But, as said already, it 
is not the purpose of the present enquiry to introduce any 
particular theory corresponding to any specific institutional 
set-up. The purpose is simply to find and to specify the con- 
ditions that must be satisfied in any case, if full employment 
is to be reached. 
To conclude, when both (II.z0) and (II.21) are fulfilled, 
then the two systems of equations (II.g) and (II.13) entirely 
hold. This means that the economic system they represent is 
in a sifuation which we may call one of equilibrium, an ex- 
pression simply taken to mean full employment of labour and 
full utilization of productive capacity. 
9. Towards a dynamic analysis 
The foregoing analysis, after introducing capital, has ac- 
quired an important characteristic: although still a short-term 
analysis it is not a static analysis. Even if we suppose that the 
equilibrium conditions (IT.20) - (II.21) are satisfied, we cannot 
say that we are at the end of our enquiry. These conditions 
refer to a certain period of time, but just in order to be fulfilled 
in that period, they may contain some elements (investments) 
whose mere existence means modifying in the following period 
those magnitudes (stocks of capital) on which the previous 
equilibrium was based. In this theoretical framework, there- 
fore (unlike what happened in the traditional type of economic 
enquiries), the attainment of the situation of equilibrium in a 
given period of time does not mean at all that all problems 
have been solved. 
We are inevitably led, by our own analysis, from the in- 
vestigation of equilibrium conditions in a given period of time, 
lo the investigation of equilibrium conditions over time. 
101 Pasinetti - pag. 34