Hayek’s ideas that the price system is a consolidator of information and a distributor of knowledge, as well as simply a way of assuring efficiency and exchange, is probably as penetrating and original an idea as microeconomics produced in the 20th century.
From Don Boudreaux. Teachers in particular will want to steal Bourdreaux eye opening thought experiment.
blogs Hayek’s “The Use of Knowledge in Society”.
There’s the famous tin story. There’s the famous pencil story.
Now — joining the pantheon of divided knowledge economics — make way for the Cuban toilet paper story.
Where no man has gone before. ht: Instapundit.
English major and Marxist social critic Rob Horning reviews The Myth of the Rational Market: A History of Risk, Reward and Delusion on Wall Street by TIME magazine’s Justin Fox:
Fox’s account of the rational market revolves around the long-held dream of discovering a method to pin down the intrinsic value of an asset—what it . . . → Read More: book: Justin Fox’s _The Myth of the Rational Market_
Hayek consistently asserted that the work of John Maynard Keynes was a retrograde throwback to the backward looking, pre-marginalist, objective cost, distributional thought of the classical British economists, a brand of thinking that had been smuggled into post-marginalist economics by Alfred Marshall. For Hayek, the modern marginalist economics of Menger, Knight, Wieser, and Jevons looked . . . → Read More: interview: 1936 — Hayek’s Breakthrough Year
Nobel Prize winner Edmond Phelps channels Friedrich Hayek and re-introduces Frank Knight in a brutal take-down of a failed generation botching up the works because they are fatally ignorant of how a capitalist economy actually works. What Phelps is too delicate to say is that the elite have been well schooled in their ignorance by . . . → Read More: edmund phelps: The Elite Don’t Understand How Capitalism Works