Two cone equilibrium
Two cone equilibriumA free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are two diversification cones. This, or a multi-cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium.
1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand.
Balance of payments equilibriumBalance of payments equilibrium
Meaningful only under a pegged exchange rate, this referred to equality of credits and debits in the balance of payments using the traditional definition of the capital account. A surplus or deficit implied changing official reserves, so that something would ultimately have to change.
Nash equilibriumNash equilibrium
An equilibrium in game theory in which each player's action is optimal given the actions of the other players. E.g., in a tariff-and-retaliation game, with each country able to improve its terms of trade with a tariff, zero tariffs are not Nash, since each can do better by raising its tariff. A Nash equilibrium, with positive tariffs, is likely to be inferior to free trade for both.
One cone equilibriumOne cone equilibrium
A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods can be produced within a single country, and there is only one diversification cone. This will arise if countries' factor endowments are sufficiently similar compared to factor intensities of industries. Contrasts with multi-cone equilibrium.
Equilibrium positionEquilibrium position
Same as equilibrium level, though perhaps of several variables at once, perhaps as displayed in a graph.
Equilibrium exchange rate
Computable general equilibrium
Equilibrium rate of interest