Consider this quote by Thomas Sowell: ""Prices are important not because money is considered paramount but because prices are a fast and effective conveyor of information through a vast society in which fragmented knowledge must be coordinated."" Would Hayek agree with Sowell? Explain carefully and fully.

Question

Demetrius Carrillo

Social Studies

27 August, 20:47

Consider this quote by Thomas Sowell: ""Prices are important not because money is considered paramount but because prices are a fast and effective conveyor of information through a vast society in which fragmented knowledge must be coordinated."" Would Hayek agree with Sowell? Explain carefully and fully.

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Answers (1)

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Isis House · Answer 1

Yes, Hayek will agree with Sowell.

Explanation: Hayek is a firm believer in the fact that no one person has all the information needed to solve economic or issues affecting a complex economy.

Hayek in one of his papers stated that the information needed to operate a complex economy should be based on the views of individuals making up the economy, according to Hayek, information should be decentralized others should also have their own views on economic issues.

With this view expressed by Hayek, he will certainly agree with Sowell as it is based on his own findings and believe.