In economy, there are some aspects beyond equilibrium that are not yet considered, this is one of aspects of complexity, the presence of subject.
Economy is science of economic transactions or must be this. Classic economic as D. Ricardo specify, refers as value creation and how this is created and traded from his origin and to final consumer.
But in economic theory there are a elephant in the room that is eluded by economic theorists… This is the subject.
In each economic transaction there are two subjects that value economic product. Each actor in transaction is a subject and determines value of merchandise in market.
First thing is accept this fact. xix siecle science in the need to formulate laws of economic behavior assume objectivity of value and surge Classic Economy.
In Walras objectivity of economic facts is not mater of dude.
A big impulse to assume subject presence did must be produced by Einstein achievements but, in my few economic knowledge, no one has made this.
Now, how to put subject in a complex area as is economy?
My response is each participant in transaction have something and much what to tell in value of merchandise.
This step is difficult to give. People has separated supply and demand, and is comfortable with this schizoid image of economic world.
But world is only one.
In a transaction are present two, a buyer and a seller. each one as a criterion of merchandise value and implicitly the value of money. Seller know how he did get that, and have reference to valuate this merchandise.
Classic objectivity can be based in assuming perfect know of both actors in economic transaction. One of few that stablish this is Milton Friedman who in his price theory assume locality to define demand and supply curves. Now he has no problem to extend his conclusions to all world.
Value (or price) is sustained thru seller criterion to appreciate merchandise, I suppose that seller have knowledge if merchandise is scarce, or if quickly or after long time can to appear other merchandise equal or like this. But also seller or buyer can to ignore market behavior. The point here is both valuation don’t necessarily are coincident.
Several cases are present in valuations of merchandise
1. Both coincide
2. We have 2 measures of merchandise value
In both cases money value is implicitly assumed by each participant.
If money is not present, then there are four cases where each participant make an estimate of value of each merchandise, this is one participant valuate both merchandises and so the other.
Perfect knowledge of market is assumed by various economic theorists. In this case i think reasonable to recognize to levels of knowledge of merchandise value.
level 1 how much value specify the other participant and how much I value merchandise.
Level 2 how much the other participant value merchandise and how much asks.
Locality specified by Friedman is valid also for Walras and Ricardo, and in Ricardo case this may be extraneous if considering Ricardo’s relation with East Indie company.
In a locality, majority of economic theory assumptions are valid, however it is possible to construct local cases where are not valid. People with handicap, locally yet, can to make no “rationale” transactions .
International commerce, in other case, produces valuation of overseas merchandise different of local merchandise value.
Non local transactions have a different merchandise valuation. This difference can be recognized as a “plusvalue”. In international trade plusvalue is gained and associated to actor who participate in merchandise transport.
Say law on local commerce specify for each merchandise there are other to interchange. But when there are a plusvalue by distant o international commerce, a gap is produced in region with no access to international commerce facilities. This is the origin of international crises. First occur in local country or region with no access to overseas commerce. basically country o region that buy or sells giving plusvalue lose circulation mean and left in difficulties to realize internal commerce.
Walras model and Ricardo international commerce model obviate this and world is suffering crises and wars and all class of calamities.