This paper resumes a source of instability of intertemporal equilibrium which was anticipated by Garegnani (2003) and criticized by Schefold (2004). The author points out that a non orthodox tâtonnement pricing must be accepted if the theory has to be consistent with the Jevons’s law of...

This paper reconsiders a recent criticism which contends that the theory of general intertemporal equilibrium, formulated by taking the physical endowments of capital goods as given, is not protected from the problem of capital at the centre of the two Cambridges debate of the 1960s. The author...