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Mises Economics Blog

The Sphere of Economic Calculation

May 2, 2008 3:43 PM by Weekend Edition | Other posts by Weekend Edition | Comments (2)

In this chapter of Human Action, Mises lays out the boundaries of economic calculation, and explains that within their sphere market prices render all the services needed of them. The tools of economic calculation are inappropriate, though, when people extrapolate into areas outside of the actual market. In particular, economic calculation cannot provide a measure of immutable value, because no such thing exists. The efforts to devise a stable money and to provide a flow of guaranteed income are futile.

FULL ARTICLE

(Robert Murphy has written a study guide for this chapter, available in HTML and PDF. This chapter follows "Valuation Without Calculation.")

Comments (2)

  • iceberg

  • Kudos to whomever photoshopped LvM into MC Escher's famous Hand with Reflecting Sphere; its simply brilliant.

  • Published: May 2, 2008 4:15 PM

  • josh m

  • I am very grateful for the study guide. Thank you.

  • Published: May 3, 2008 3:57 AM

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