Well Put My Friend

From page 5 of Israel Kirzner's The Meaning of Market Process-

For Austrians, however, mutual knowledge is indeed full of gaps at any given time, yet the market process is understood to provide a systemic set of forces, set in motion by entrepreneurial alertness, which tend to reduce the extent of mutual ignorance. Knowledge is not perfect; but neither is ignorance necessarily invincible. Equilibrium is indeed never attained, yet the market does exhibit powerful tendencies towards it. Market co-ordination is not to be smuggled into economics by assumption; but neither is it to be peremptorily ruled out simply by referring to the uncertainty of the future.

How do we best understand knowledge? Austrians have staked out a middle ground between the two extremes for a long time. It's proven a tough place to be.

Perfect knowledge is easy to deal with. Radical uncertainty amounts to throwing our hands up. An important area in economic research going forward is a refinement of this middle ground.

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