We are pouring over Lavoie’s book Rivalry and Central Planning this month and it is a pleasant surprise that the text is gentle on the eyes. No squinting. No twisted eyebrows. He writes in a pleasant and forthright manner.
This page is worth reproducing as it overrides so much of what is taught in standard economics classes, the ones with the supply and demand curves settling sweetly on a set price. There is one price! And the consumer wants to know what it is. Yet…how do you tell them then that, it depends. On what? Well- one what is in the air at the moment of the transaction.
Markets exist in a fluid and dynamic system. Prices are representative of what has happened in the past. Thus they provide a guide to the future. But it is the participants of the moment who then again come to settle the new prices. And on it goes.
Home Economics 