The theories that I (and others) helped develop explained why unfettered markets often not only do not lead to social justice, but do not even produce efficient outcomes. Interestingly, there has been no intellectual challenge to the refutation of Adam Smith's invisible hand: individuals and firms, in the pursuit of their self-interest, are not necessarily, or in general, led as if by an invisible hand, to economic efficiency. The only question that has been raised concerns the ability of government to remedy the deficiencies of the market. Within academia, a significant fraction of economists are involved with developing and expanding on the ideas of imperfect information (and imperfect markets) that I explored. For instance, Edmund Phelps, this year's Nobel Prize winner, belongs to this "school" of thought. But in political discourse, simplistic "market fundamentalism” continues to exert enormous influence.
Joseph StiglitzRelated topics
ability adam developing fraction general government imperfect instance intellectual justice lead led market produce question refutation remedy school self-interest significant thought others academia Nobel fundamentalismRelated quotes
In fact, the only person to rival Friedman for policy influence in the twentieth century is John Maynard Keynes, who had a strikingly different view of the role of government. Keynes was influential because he advocated more government intervention into what he perceived as poorly functioning private economies caught up in the Great Depression. In contrast to Keynes, Friedman put the main blame for the Depression on government failures, especially of monetary policy. Hence, the Depression did not make Friedman a fan of big government. He also found in the Federal Reserve's failure to prevent deflation an argument in favor of monetary rules. As the world evolved- with low inflation becoming the major mission of central banks and free markets and secure property rights becoming the main policies to promote economic growth-Friedman surely won the intellectual battle.
Robert Barro
Jazz, often called America's classical music, so influenced our culture that Americans named a decade after it. Like the country of its birth, jazz blends many traditions, such as African-American folk, rhythm and blues, French Creole classical form, and gospel. Through the creation and performance of music like jazz, black Americans were better able to exchange ideas freely across racial and cultural barriers. Before our Nation made significant strides in truly promoting equal justice and opportunity for all, black and white musicians in the genres of jazz, blues, and country played together in jam sessions, recording studios, and small bands. In many ways, their art preceded social change, allowing black and white musicians to meet as equals and to be judged on their musical ability, rather than the color of their skin. Their music also provided an outlet for African Americans to speak passionately and brilliantly to the rest of the Nation and the world.
George W. Bush
The Chartered ccountants by virtue of their qualifications, experience and training can render valuable services in these difficult times in areas which are vital to economic and industrial growth. It should be the duty of the members of the profession in the Northern India Regional Council, apart from examining accuracy of transactions, the modern auditor should also look into the propriety of such transactions... the profession has to develop uniform accounting principles, standard terminologies and precise definitions of various accounting concepts. This was desirable from the point of view of providing reliable information in the financial statements for the benefit of the intending investors, members of the public, government agencies and financial institutions. This will enable individuals and organisations to form a fairly accurate judgment of the financial position by a study of the audited financial statements of companies.
Fakhruddin Ali Ahmed
In order to sustain dialogue with Islam, suitable training is essential for all involved, not only so that they can be solidly and joyfully grounded in their own identity, but so that they can also acknowledge the values of others, appreciate the concerns underlying their demands and shed light on shared beliefs. We Christians should embrace with affection and respect Muslim immigrants to our countries in the same way that we hope and ask to be received and respected in countries of Islamic tradition. I ask and I humbly entreat those countries to grant Christians freedom to worship and to practice their faith, in light of the freedom which followers of Islam enjoy in Western countries! Faced with disconcerting episodes of violent fundamentalism, our respect for true followers of Islam should lead us to avoid hateful generalisations, for authentic Islam and the proper reading of the Koran are opposed to every form of violence.
Pope Francis
The proposition that markets drive economic efficiency is central to much of economics. Adam Smith illustrated that the "invisible hand” of the market drives efficient allocation of resources in a system of division of labor. Friedrich Hayek illustrated the central importance of the price system as an information processing mechanism more powerful than any centrally planned system could ever be. Kenneth Arrow and Gerard Debreu illustrated that complete and perfect markets deliver a Pareto-efficient equilibrium, in which no one person can be made better off without making someone else worse off. And the development of the efficient- market and rational- expectations hypotheses suggested that financial markets are in fact efficient, and that the conditions required for efficiency and for rational and stable equilibria apply even in contracts between the present and the future, which financial markets provide.
Adair Turner, Baron Turner of Ecchinswell