IN HIS VALUE AND CAPITAL, Hicks developed the well known conditions for (perfect) stability of an equilibrium system. These conditions are based on the slopes of the excess demand functions only, and not on any explicit dynamic system. A dynamic formulation was first given by Samuelson [11]. He demonstrates that his dynamic stability conditions differ essentially from those of Hicks, and constructs numerical examples to show that the Hicks conditions are neither necessary [11] nor sufficient [12] for dynamic stability.' However, these examples are more or less arbitrary, in the sense that they are derived without consideration of the microeconomic foundations of the excess demand functions. More recently, use has been made of properties as the homogeneity of the excess demand functions and the Law of Walras in analyzing the stability of a competitive equilibrium.2 Similarly, Scarf [14] constructed examples of instability of a competitive exchange model based on such properties. The following two questions may be raised given that the examples of Scarf are not only dynamically unstable but also unstable in the sense of Hicks for any choice of the numeraire commodity (if any). First, can the lack of equivalence between the Hicks and Samuelson conditions be demonstrated while full use is made of the microeconomic implications of a purely competitive economy? Second, can this demonstration be made in such a way that the lack of equivalence is invariant under a change in numeraire? The purpose of this paper is to answer these two questions affirmatively using examples similar to those of Scarf. In the next section the Scarf examples will be shortly reproduced. A slightly modified model is used in Section 3 to illustrate the relevance of the choice of the numeraire in the proposed comparison of stability conditions. In the final section we construct two examples of competitive equilibria, the one being stable but non-Hicksian for any choice of the numeraire, the other being unstable but Hicksian irrespective of the choice of the numeraire.