It's not that we need to rid ourselves of the baggage of macrostatistics completely. Rather, we need to 1) critically assess whether they are appropriate, if so, 2) for what role, and finally 3) whether they are consistent as a tool we can use to tell the story we want.
Just as central planners cannot know how individuals will value a product or service, so too are central planners unable to calculate or plan for the endless array of risk assessments made by potential victims of covid-19.
With his Principles of Economics Carl Menger not only laid the foundation for the Austrian school itself but for its continuing development to this day.
Just as central planners cannot know how individuals will value a product or service, so too are central planners unable to calculate or plan for the endless array of risk assessments made by potential victims of covid-19.
Why do individuals pay much higher prices for some goods versus other goods? The answer requires understanding the law of diminishing marginal utility.
Interpersonal utility can't be measured. After all, if you can't measure a single person's utility, it makes no sense at all to measure one person's utility against that of another.
Monetary inflation helped bring on the Terror and set French progress back a generation.
Hayek’s last proposal for monetary reform calls for privately issued, competing fiat currencies. It's debatable whether or not this is a good idea.
Bob shows how the movie "A Beautiful Mind" got game theory wrong.
