Economists miss the boat when they act if Arrow and Debreus general equilibrium model accurately describes markets in the real world of constant change. In contrast, the classical view on the market mechanism offers a helpful foundation on which to add modern insights about how markets create and coordinate information.
Sabiou M. Inoua is predoctoral research associate in the Economic Science Institute at Chapman University.
Vernon L. Smith is a member of Independent Institutes Board of Advisors and Professor of Economics at Chapman University.
Other Independent Review articles by Vernon L. Smith | ||
Winter 2024/25 | The Road to Freedom: Economics and the Good Society | |
Summer 2024 | The Economic Function of Inflation Is to Lower the Real Value of Wealth Assets Sufficiently to Pay for the Governments Excess Spending Monetized by the Federal Reserve | |
Summer 2023 | Adam Smith, Sociality, and Classical Liberalism | |
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