NYU finance professor Viral Acharya points to Hayek, Smith, Arrow, & Diamond. Snippet:
Governments intervene in banks and markets when crises take place to save the systemic failure costs. This leads to the lack of a private market for generating information on systemic failures, especially in debt markets that are guaranteed by the governments. This . . . → Read More: THE ECONOMIC CRISIS — WHO MATTERS?
A visiting Federal Reserve scholar attempts to explicate the difference between Hayek’s explanatory universe and the Arrow-Debreu explanatory universe using the conceptual language / conceptual straight jacket of . . . Arrow and Debreu:
Arrow and Debreu showed that allocations will be Pareto efficient even in economies in which time and uncertainty are explicitly represented. . . . → Read More: Hayek vs Arrow & Debreu