On Wednesday, March 11, 2009 at 11:13:15 (-0700) raghu writes:
>[...]
>I suspect Hayekians do not have a good answer to that. ('Liquidate!
>Liquidate!' is not a good answer.)
>
>A more reasonable answer is that it is the government's role to step in when
>markets make a disastrous mistake.
>
>But who can step in if the central planner screws up?? Seems to me there is
>a fatal flaw here.

That's what arms (branches) are for.  You can always have monitoring groups
that trigger takeover by a different agency whose job it is to fill in
the temporary holes then remove itself (or be removed).  Nothing too
difficult in principle.


Bill
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