The financial crisis invalidated a naïve notion of efficient markets, but the most sophisticated version is still viable. Whereas the invalidated version holds that markets never err and always adjust instantaneously, the sophisticated version, associated with the ideas of Adam Smith and F. A. Hayek, holds that markets mobilize individuals to realize gains from trade and to innovate and thereby produce generalized prosperity.
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|Other Independent Review articles by Peter J. Boettke|
|Winter 2019||Stephen Margoliss Contributions to Economics and Political Economy|
|Fall 2018||Gordon Tullock, Praxeology, and the Qualities of a Natural-Born Misesian|
|Fall 2017||A Legacy of Lies and Lost Souls|
|[View All (8)]|