The Federal Reserve’s (Permanent) Knowledge Problem
The Federal Reserve’s (Permanent) Knowledge Problem
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Almost eighty years ago, economist and philosopher Friedrich Hayek published what is now considered to be one of the most important essays in all of economics, “The Use of Knowledge in Society.” In it, he detailed what is known as “the knowledge problem,” which he describes as, “a problem of how to secure the best use of resources known to any of the members of society, for ends whose relative importance only those individuals know.” In other words, the knowledge problem is the problem of how to ensure the most productive and efficient use of society’s resources, when the sum...
Source: https://www.newswars.com/the-federal-reserves-permanent-knowledge-problem/
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