Abstract

Ever since the collapse of Soviet-bloc socialism, and the associated breakup of the Soviet Union itself, it has been accepted by the vast majority of political economists that Friedrich A. Hayek and his fellow Austrians, notably his mentor, Ludwig von Mises, were the unequivocal victors in the famous “socialist calculation debate” that had raged for a good seven decades. It was over. The anti-socialist, Austrian position had won. Market capitalism was triumphant in both theory and practice. The combination of lack of incentives and inevitably dispersed and asymmetric information had doomed command central planning of economies, especially in an increasingly complicated modern world economy (Rosser and Rosser, 2004, Chap. 3).