Capitalism, coordination, and Keynes: Rejoinder to Horwitz
Titel:
Capitalism, coordination, and Keynes: Rejoinder to Horwitz
Auteur:
Hill, Greg
Verschenen in:
Critical review
Paginering:
Jaargang 10 (1996) nr. 3 pagina's 373-387
Jaar:
1996
Inhoud:
In the ideal market of general equilibrium theory, choices are made in full knowledge of one another, and all expectations are fulfilled. This pre-harmonization of individual plans does not occur in real-world markets where decisions must be taken in ignorance of one another. The Austrian school grants this, but claims that real-world price systems are nonetheless effective in coordinating saving and investment decisions, which are motivated by disparate considerations. In contrast, Keynes held that without the pre-reconciliation of individual plans, investment and employment would be less than optimal, and the resulting distribution of income arbitrary and inequitable.
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