Why The Government’s Economic Aggregates Aren’t What They’re Cracked Up To Be

A crucial reason why monetary and fiscal planners fail in their endeavors to direct the market economies over which they assert their authority is that the very categories and indicators they use as the signposts for what they may need to do are themselves false signals hiding from view the reality of the complex market system……Lost in translation, among other things, are the microeconomic patterns of relative demands, relative supplies, relative supply chains of production through different periods and stages of production, and the structure of relative prices that interconnects and links all of these complex and interdependent activities, one with the other.