Wednesday, 9 September 2015

Quote of the Day: On prices, price signals and the business cycle

“In the 1920s, Hayek began to grasp the importance of price signals. Problem was: how these signals related to coordination & dis-coordination.
    “Hayek realized that when price signals were leading to coordination people were learning the right things; when price signals systematically misled people were systematically learning the wrong thing.”

- The Hayek Centre’s twitter account, summarising Bruce Caldwell’s explanation of Hayek’s insight.

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