The implications of an imperfect world

posted by
July 19, 2011
Ludwig von Mises Institute
by Jonathan M. Finegold Catalan  
Posted in Commentary

"Something of a stain on the post-1970s monetarist counterrevolution is its continued dependence on perfect-market models — notorious for their reliance on various assumptions, including perfect knowledge and perfect competition. Similar schools of thought, such as the economics of rational expectations, are also based on this notion of 'perfection,' whether it is some form of macro optimality or the supposition of flawless individual decision making." (07/19/11)  

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