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July 08, 2008

Comments

zenpundit

Hi John

"market fundamentalism" is often a phrase employed by those who have great conidence in state directed planning to intervene in markets without incurring costs, obvious as well as unintentional ones.

This is of course, impossible - all transactions come with costs that have to be empirically evaluated. The free market cannot efficiently cover every kind of transaction, this is true and to seldom acknowledged. However, market failure is the exception and state-autarkic economies have failure, or at least degraded efficiency and rates of innovation, as a rule.

I'm about to crack some Stiglitz this summer, so I'm not saying he himself has that view but his usage gives aid and comfort to those who still imagine that a small elite have enough information to wisely and consistently micromanage economic decisions on national or global scales ( which an serve rentier interests as ably as politically timed de-reg can). They don't -the best that can be hoped for is a resiliency state where economic platforms have both durability and flexibility of and relative transparency

interstar

C'mon zenpundit! "aid and comfort"? What? To the Commies under the beds?

Surely you can do better than that. :-)

John Robb

That's the last war. The new war is about something else entirely.

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