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Posted By Guinevere Nell On May 8, 2009 @ 2:36 pm In First Principles | 1 Comment
Today is Friedrich Hayek ’s birthday and it is an important year to celebrate his birth. Although the twentieth century was the century  of Hayek , this year seems also to be the year of Hayek. As a country, we are belatedly remembering his warnings, and seeing the consequences of ignoring them for so long.
Hayek explained many years ago the problems with centralized monetary policy, over-regulation and interference with prices. He understood the danger of subsidizing risk  and loss and feeding a boom with easy money.
He also understood that markets are a process, and the process is one of learning and discovery—for this reason, financial models that are uniformly imposed and expect perfect information are doomed to fail. 
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2009/05/08/hayek%e2%80%99s-birthday/
URLs in this post:
 Friedrich Hayek: http://en.wikipedia.org/wiki/Friedrich_Hayek
 century: http://www.hoover.org/publications/digest/3492456.html
 of Hayek: http://www.dallasfed.org/research/ei/ei9901.html
 subsidizing risk: http://www.foundry.org/2009/05/07/whos-behind-the-financial-meltdown/
 financial models that are uniformly imposed and expect perfect information are doomed to fail.: http://blogs.telegraph.co.uk/philip_booth/blog/2009/01/21/financial_crisis_shows_why_we_should_admire_freidrich_hayek
 Road to Serfdom: http://www.amazon.com/Road-Serfdom-Documents-Definitive-Collected/dp/0226320553/ref=sr_1_1?ie=UTF8&s=books&qid=1241790033&sr=8-1
 toast of burgundy wine: http://hayekcenter.org/?p=1025
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