This paper proposes a dynamic equilibrium framework that reinterprets persistent macroeconomic issues—global imbalances, long-run deflation or entrenched inequality—not as market failures, but as structural outcomes. Departing from standard nominal‑adjustment models, it incorporates asset‑side mechanisms and reconsiders the transversality condition (TVC), deriving: Rₜ-ρ=n+Dₐ-U_ (θa) θ/Uc; This balance means the divergence between asset returns (Rₜ) and time preference (ρ) is sustained by the balance of capital diffusion (Dₐ), population growth (n) and preference terms (U_ (θa) θ/Uc). As result, equilibrium arises from structural and institutional interplay beyond a price‑clearing mechanism. Simultaneously, by redefining the TVC as a structural condition on asset valuation resulting from this framework, we explain how steady states with persistent differences in asset levels and external balances can coexist. Redefining imbalances as the result of endogenous optimization in this way enables economic understanding that is in line with the realities of economies and provides tools for designing practical policies—for example, Structural Selection of the Steady State, Policy Control of Capital Flows, Asset Dynamics–Based Policy Reconstruction and so on—. This enables economics to reflect the realities of economic society and address structural challenges.
Kazuhito Kitamura (Thu,) studied this question.