--
At 12:15 PM -0700 on 4/27/02, [EMAIL PROTECTED] wrote:
> > People who think like economists or libertarians will conclude
> > that markets tend to stability, because humans will analyze
> > fluctuations, attempt to predict them, and then take
> > precautionary action to protect themselves, which will have
> > the affect of smoothing the fluctuation, unless prevented by
> > forceful state action as in the 1930s.
> >
> > Those who think like ecologists or totalitarians will conclude
> > markets are unstable, because they think that humans lack the
> > wisdom to anticipate the future.
On 27 Apr 2002 at 15:45, R. A. Hettinga wrote:
> Except if they're, paradoxically, "Austrian" economists, like
> Hayek, or von Mises, who reject "scientism" and, oddly enough,
> equilbrium theory.
Rejecting equilibirum theory is not equivalent to doubting that
markets tend to stability. Austrians attribute business cycles to
misjudgments, thus cycles will be limited by information and
skill. They disagree with each other, and keep changing their
story, on which misjudgments matter, and how one misjudgment
influences the next but the basic idea -- that business cycles are
the result of public and private errors -- is the same as the
chicago theory.
--digsig
James A. Donald
6YeGpsZR+nOTh/cGwvITnSR3TdzclVpR0+pr3YYQdkG
pP3cbxd4sOb1HF66EW/XKVirGNYHSgHO/DMl1vyv
4C66aZwLHi4nKNneFStStFw688CuEpfkBghGrL0qV
