ABSTRACT OF PAPER
Title: DOUBLE COMPETITION AND STABILITY IN SIR JAMES STEUART
Author:
In this paper we deal with the theory of price determination in Steuart’s writings; in particular with the concept of Double competition. The background is the evolution of the concept of market during the 18th century and the topic is the problem of price stability. Steuart proposed a theoretical construction which extended into new grounds. Firstly,the role of the time in the determination of price and secondly, the market process toward equilibrium (Skinner, 1967). The way in which these two elements contribute to determine the market price has been explained by means of the walrasian approach (Rebeirol, 1982; Karayianis, 1987). However, this way does not shed light on the question of price stability which Steuart considered the main topic of market dynamic. This paper presents other approach in order to explain the price formation model in Steuart’s writings. The first part of the paper presents the method proposed by the authors in order to analyse the price formation in Steuart. We are going to propose a static approach made of periods. The second part develops the explanation of Steuart’s theoretical schema. Pricedetermination is a breakdown process inside a monetary circulation system that ensures the transaction between agents, i.e. the market. However, every period is connected so that price fluctuation becomes a new economic problem. The two final sections of the paper are dedicated to the required external regulation. If market is unstable, merchants do not know how to bring this stability about. Maintaining a stable price depends on an authority outside the market. Steuart propose the way towards a smooth price vibration where State and stability are inseparable.
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