This is the full recording of the inaugural Madam C. J. Walker Colloquium in Political Economy at Ball State University, sponsored by the BSU Institute for Entrepreneurship and Free Enterprise. Bob has been involved and in fact lead researcher on the Economic Freedom Index for decades building on the ideas of Milton Friedman and the operationalizing of that project by James Gwartney. I weave several themes of interest to CP readers, including Mises's emphasis on how specialization and exchange lead to social cooperation, and Hayek's point that exchange is about turning enemies into friends. See this graph: This weekend, I've seen a couple of online pieces (second one gated) arguing that one possible explanation for these data is that unemployed folks are less mobile than they used to be thanks to having homes that they cannot sell for a price that comes close to breaking even. Furthermore, understanding the epistemological problems involved in forming objectives and translating them into practice can yield insights into the nature and source of … Posted by Steve Horwitz on March 22, 2019 at 06:55 AM | Permalink Much social action, including perhaps inventing language and society, requires solving co-ordination problems. Coordination Problems … "The reality of the last two centuries is that we have beaten our swords into plowshares and our spears into pruning hooks as we’ve learned that the liberal institutions of property, contract, and voluntary exchange are superior to violence and war. They have no knowledge of the lived reality of this political and economic system. Comments (8) Posted by Steve Horwitz on May 14, 2019 at 09:12 AM | Permalink The Problem of Coordination in Politics: What Critics of Neoliberalism Might Draw from its Advocates. The latest Canadian data that I could find has their current unemployment rate at 7.9%, lower than the US, and although their median duration of unemployment in 2009 was 17 weeks, which was slightly higher than the US one was on average, that number was actually just a bit higher than their 2007 and 2008 numbers and the same as 2005. | Comments (38) Where households are stuck with the housing capital, they are also stuck with the range of jobs available in that area. Model choice then becomes a matter of credibility, prior inclination or something else; the “facts” never speak for themselves, and they don’t speak with one voice. An Economic Tour of the Weird, Professor Peter T. Leeson: Anarchy Unbound: Why Self-Governance Works Better Than You Think (Cambridge Studies in Economics, Choice, and Society), Peter J. Boettke: Living Economics: Yesterday, Today, and Tomorrow, Christopher Coyne: Doing Bad by Doing Good: Why Humanitarian Action Fails, Paul Heyne, Peter Boettke, David Prychitko: Economic Way of Thinking, The (12th Edition), Steven Horwitz: Microfoundations and Macroeconomics: An Austrian Perspective, Boettke & Aligica: Challenging Institutional Analysis and Development: The Bloomington School, Coyne & Leeson: Media, Development, and Institutional Change (New Thinking in Political Economy Series), Peter T. Leeson: The Invisible Hook: The Hidden Economics of Pirates, Christopher Coyne: After War: The Political Economy of Exporting Democracy (Stanford Economics & Finance), Philippe Lacoude and Frederic Sautet (Eds. It helps us understand the growth of civilization and social cooperation, and how we are able to turn our swords and spears into plowshares and pruning-hooks. These seemingly diverse situations all had one thing in common: they were an opportunity to study the processes through which people deliberated, negotiated, and sometimes even fought to come to agreement on a set of rules that could solve a real social problem that was staring them straight in the face. But I have some concerns that  I am struggling to think through. ): The Elgar Companion to Austrian Economics. I believe that it is a coordination problem, but one that collaboration can also solve. The prisoner’s dilemma. But, here is a reality, none of the 18-21 years olds in college today were alive when communism collapsed in 1989. I can see some potential for progress, as long as the number of outcomes from a particular setup-type is not too varied (as it is with the standard macro-empirical story). Providing that knowledge is the primary function of the price system. Surely benefits extensions matter as well as other factors, but this is one that we perhaps haven't seen before.] It may well be the case that some folks who would like to find a (new) job elsewhere will have to wait until they have sufficient equity in their homes to afford to sell. | As the problems confronting governments have become more complex, effective coordination is even more critical. An effective Coordination activities and structures can bring a sense of order to the resulting chaos. The fact of decentralized knowledge requires that an economy capable of producing increased prosperity for all has both decentralized decision-making (private/several property) and a price system to coordinate those decisions. First, individuals could fail to coordinate when coordination is preferred to not coordinating (Taylor, 1976, 1987). Since I wanted to be able to link to such a post, I decided to try to write it. I think it leverages the distinction between real/radical uncertainty (which is of a categorical, open-ended, inarticulabe nature – things will happen that could not have been foreseen or even imagined) and the effects of this uncertainty, which are arguably limited to a set of known categories. Show Less. 2. Of course, this is not so different, maybe not different at all, from what really goes on with business-as-usual empirical work in economics, based on classical probability theory and the estimation of structural parameters. The ability to get along is also an important precondition for the strong ties, social support, and community we receive from our neighborhoods, churches, and other forms of voluntary association. There are a lot of reasons for this, but I do think that liberals need to engage in some self-reflection about whether our own rhetoric and way of talking about economics and liberalism don’t bear some responsibility for our dilemma. The choice of a voluntary standard tends to be stable in situations in which all parties can realize mutual gains, but only by making mutually consistent decisions.