Macro thinkers tend to assume there are 3 basic ways to solve problems: institutions, markets, and organized military conflict (war). No, there are 4. The fourth way is extended chaos, allowing the natural dynamics to play out and create a new default equilibrium condition.
Conversation
“Laissez-faire was planned, planning was not” — Polyani.
Markets in practice assume more institutional structure not less. Courts to enforce contracts, rule of law, stable monetary system, Foreign trade being enabled, sovereign bonds not being junky.
Quote Tweet
Replying to @vgr
How is this differentiated from a market?
3
2
20
A big misconceptions of free-market ideologues is that markets are some sort of natural space that expands endlessly as institutional spaces contract. A “natural” market based on informal commerce unlinked to state-organized commerce would be a fraction of the size.

