The Miracle of the Price System

This week's post at e3ne.org is about the miracle of the price system: Natural disasters harm people’s standard of living by destroying resources, but in a free marketplace, rising prices and profits in scarce goods give both buyers and sellers an incentive to heal the economic wound. Drawn by the possibility of making good profits …

Soros on Hayek

Pileus readers may be interested in George Soros' new short essay on F.A. Hayek and Karl Popper. Soros lauds Hayek's "fallibilism" but attacks him for inconsistency in endorsing "market fundamentalism." According to Soros, Hayek is an "apostle of a brand of economics which... is a formalized and mathematical theory, whose two main pillars are the …