Sunday, December 30, 2012

Quote of the Week...

is from p. 134 of The Market as an Economic Process by Ludwig Lachmann:
“Those who glibly speak of ‘market clearing prices’ tend to forget that over wide areas of modern markets it is not with this purpose in mind that prices are set. They seem unaware of the important insights into the process of price formation, an Austrian responsibility, of which they deprive themselves by clinging to a level of abstraction so high that on it most of what matters in the real world vanishes from sight.”

(h/t Lord Keynes: Mises versus Lachmann on Equilibrium Prices)

1 comment:

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