Friday, December 6, 2013

Economic Lesson of the Day

Economics is about the allocation of scarce resources and prices are the mechanism that transmit information to economic participants. Distorting the pricing mechanism (be it through QE, setting interest rates, mandating minimum wages, welfare, industry subsidies, the list goes on) retards the information flow and creates imbalances, imbalances that always correct and in some instances painfully so.
(br />

No comments:

Post a Comment