One More Time with Feeling

At The Austrian Economists blog, Peter Boettke continues to stress a much neglected truth:

Let me state this one more time with feeling — while there may be macroeconomic problems, there are only microeconomic explanations and solutions. Aggregate variables do not interact with one another independent of the choices of individuals. And those choices are guided by the incentives actors face, and the informational signals they receive. In short, economics is about exchange and the institutions within which exchanges take place. It is all about property rights, relative prices, the lure of profit and the penalty of loss.

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