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| | Gray, F. A. Hayek and the Rebirth of Classical Liberalism, continued: Library of Economics and Liberty |
 | | On the other hand, he continues to recognize that in respect of complex phenomena such as are found in the social studies, testability may be a somewhat high-level and protracted process, and the ideal of high empirical content captured in a nomothetic frameworka demanding and sometimes unattainable ideal. |
 | | First, nothing in Shackle's argument tells against the point, defensible both on theoretical grounds and as an historical interpretation, that in practice by far the most destabilizing factor in the market process is provided by governmental intervention. |
 | | Secondly, and relatedly, it is unclear that the kind of disequilibrium of which Shackle speaksdisequilibrium generated by divergency in subjective expectationscould amount to anything resembling the classical business cycle, which is more plausibly accounted for in Austrian and Hayekian terms as a consequence of governmental intervention in the interest rate structure. |
| www.econlib.org /library/Essays/LtrLbrty/gryHRC2.html (8192 words) |
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