Tuesday, May 3, 2011

The Incoherence of Friedrich Hayek

From Brad DeLong's blog:
Question:
 "Is it your view that if I went out tomorrow and bought a new overcoat, that would increase unemployment?"

Hayek:
"Yes," said Hayek, "but," pointing to his triangles on the board, "it would take a very long mathematical argument to explain why."
I suppose this just goes to show the dangers of relying on excessive mathematical models that defy common sense. Mathematics is not a substitute for other types thinking, but instead a very powerful and important supplement to them.

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