Prices

While F.A. Hayek's famous 1945 essay effectively critiques the "perfect information" hypothesis, it is an inadequate explanation of the issue of economic calculation.

University of Rochester economist Steve Landsburg joins Bob to discuss the abysmal performance of ChatGPT on his undergraduate exam.

Can prices be "wrong" (i.e. in disequilibrium) if they are "sticky?" Jonathan Newman joins Bob to discuss. 

While F.A. Hayek's famous 1945 essay effectively critiques the "perfect information" hypothesis, it is an inadequate explanation of the issue of economic calculation.

The siren song of a stable price level has lured leading politicians and economists as early as 1911.

Jonathan Newman joins Bob to critique a recent Twitter argument where some were claiming that supercomputers solved the socialist calculation problem.

Contrary to myth, businesses can't just set prices at whatever level they want. "Greedy" capitalists can ask for higher prices, but prices mean little if people are unable or unwilling to pay them.

Falling prices ultimately lead to an increase in savings and to the creation of new wealth.

While Bitcoin's S2F Model has come under some criticism, the best analysis of its flaws comes from perspective of Austrian economics.

It is easy to think of supply and demand curves as being key to economic analysis. In reality, they can't tell us much, and emphasizing them actually stands in the way of better understanding economic processes.