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.
|Other Independent Review articles by Peter J. Boettke
|Don Lavoie: The Failures of Socialist Central Planning
|Mont Pèlerin 1947: Transcripts of the Founding Meeting of the Mont Pèlerin Society
|Academic Entrepreneurship in Sometimes Hostile Environments: James Buchanan and the Virginia School of Political Economy
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