Unfortunately, economists, generally, failed to understand that aggregate variables
that may be measured with tolerable accuracy ex post may not be variables
subject to control, directly or even indirectly. The fundamental misconception
here lies in the understanding of what ‘the economy’ is. The ‘economic
problem’ is not (despite Lionel Robbins) an engineering problem that may be
defined simply as the allocation of scarce resources among alternative uses. The
economy, in some inclusive definitional sense, is perhaps best described as an
order that consists of an interlinked set of exchanges, simple and complex, from
which outcomes emerge that may in some respects be meaningfully measured
but that cannot be chosen, and thereby controlled, by concentrated decision takers.
Witty James! Clear and concise. Still disentangling some things though... out of my field. Better: out of my league.
ResponderEliminar