The Economist's Cookbook

Recipes For A More Free Society

  • "The curious task of economics is to demonstrate to men how little they know about what they imagine they can design."

    - F.A. Hayek

Quote of the Day

Posted by The_Chef On 12:56 PM 1 comments

From Chris Coyne's After War: The Political Economy of Exporting Democracy:

"...Nobel Laureate Milton Friedman, writing in the area of monetary policy, noted not only that policymakers lack the requisite knowledge to develop and commit to effective discretionary policies, but that there is a time lag between the recognition that a policy is needed and the design and ultimate implementation of that policy. The passage of time is itself an issue because a policy that is appropriate in one period may not be appropriate in subsequent periods."

Hmmmm yet another problem with policy-based manipulation of an infinitely complex market.

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1 Response for the "Quote of the Day"

  1. Justin says:
    January 9, 2008 at 9:05 PM

    The first rule of good economic policy is don't legislate the market. The second rule of good economic policy is DON'T LEGISLATE THE MARKET.

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