604

* PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - ~

going to react? The answer depends on the particular institutions
 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 conditions
 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 expression
 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 acquired
 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, therefore
 (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 investigation
 of equilibrium conditions in a given period of time,
lo the investigation of equilibrium conditions over time.

101 Pasinetti - pag. 34