The science of economics is born out of the puzzle that the coordination problem presents to our imaginations. The solution to the puzzle is the entrepreneurial market process. And the resulting order of the market system is the miracle that should inspire our intellectual awe and amazement and attract subsequent generations of students and scholars to want to better understand how market forces work in theory and practice. Focusing our intellectual attentions on the conditions associated with the state of rest (when plan consistency is achieved) more often than not impedes understanding by trivializing the miracle we witness daily. While the characteristics of a competitive market equilibrium are essential to our economic understanding, we must nevertheless focus attention on how that equilibrium is brought about through the continual adjustment of relative prices that accomodate changes and guide individual decision makers in their necessary adaptations to shifting market conditions. This is how markets work to ensure that individuals realize the mutual gains from trade and the mutual gains from innovation, and realize the full benefits of social cooperation under the division of labor.
domingo, dezembro 23, 2012
The Function of Market Agitation
The Function of Market Agitation por Peter Boettke: