The illusion that makes the math look nice

posted by
December 28, 2010
The Libertarian Standard
by Wirkman Virkkala  
Posted in Commentary

"Perhaps the greatest contribution of socialism to economics was to cajole Austrian economists into understanding just how different their theoretical approach was from the main stream of economics. At first, Ludwig von Mises and F.A. Hayek thought they were on the leading edge of that main stream. But the two major debates that they engaged in in the first half of the 20th century — over business cycle theory and regarding calculation in the socialist society — both proved vexing. They should have won both debates. They had the better arguments. But in both cases the majority of economists sided against Mises and Hayek. And in both cases it was, in a sense, over equilibrium theory." (12/27/10)  


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