It is known that when voluntary exchange is permitted at disequilibrium, dynamic stability may fail because of lack of liquidity. In this paper it is shown that when the economy runs out of liquidity dynamic stability can still be restored by means of a planning procedure of redistributing...

It is known that, if disequilibrium trade occurs according to the assumptions of the Hahn Process, Walrasian stability is achieved by means of falling target utilities. This paper shows, by means of an example in a pure exchange economy, that the assumptions of the Hahn Process are not...