by Jerry O’Driscoll
I have an op ed in today’s (Tuesday, April 20, 2010) Wall Street Journal.
I extend Hayek’s argument about prices as information transmitters to other essential elements of a market economy, such as accounting statements and representations made to customers. Prices and interest prices were distorted in the boom, but so, too, accounting statements and representations made by borrowers to lenders, and lenders to borrowers.
The free market depends on truth telling, the accuracy of information and honest pricing. Instead, as I argue, we are becoming “An Economy of Liars.”