/sci/ - Science & Math

>>5431973
>>5431981
"However, although Rational Expectation Hypothesis (REH) economists were concerned to make the case for unfettered markets, REH is also the answer to the central planner's dream. Just think of those giant linear-programming exercises designed by the Soviet mathematicians in the 1960s in the attempt to make central planning rational. The crucial assumption of REH is not perfect competition, but perfect information. Had the Soviet state been able to concentrate the information and computing power now said to be dispersed around free markets, there would have been no technical reason why its choices should not have been perfectly rational in the way postulated by REH. A single Platonic guardian would make no mistakes."

-Robert Skidelsky, Keynes: The Return of the Master