Perhaps one day earthquakes, hurricanes and financial crashes will all be predictable. But we don't have to wait until then for seismology, meteorology and economics to become sciences; they already are.
Eric MaskinRead
Many markets work best with little or no outside interference. But others - especially those subject to big 'externalities' - need a helping hand.
Interpretation
What this quote means
Markets can function independently, but some require external assistance to mitigate negative impacts.
In this quote, Eric Maskin emphasizes the dual nature of markets, indicating that while many operate efficiently on their own, certain markets, especially those affected by significant external factors, may struggle without intervention. This intervention is necessary to ensure fairness and to address issues that may arise from externalities, such as pollution or economic inequality, that can distort market outcomes.
Themes
MarketsExternalitiesInterventionEconomicsEfficiency
In practice
Example use cases
Referencing this quote during a lecture on market dynamics.
More from Eric Maskin
All quotes βSimilar quotes
There is always some chance of recession in any year. But the evidence suggests that expansions don't die of old age.
Janet YellenRead
Conventional economic theory... counts the depletion of resources as the accumulation of wealth.
Mark LynasRead
Can we please agree that in the real world, corporations exist for one purpose and one purpose only - to make as much money as possible, which means cutting costs as much as possible?
Robert ReichRead
It is a singular advantage of taxes on articles of consumption that they contain in their own nature a security against excess. They prescribe their own limit, which cannot be exceeded without defeating the end purposed - that is, an extension of the revenue.
Alexander HamiltonRead
There can be no rise in the value of labour without a fall of profits.
David RicardoRead
War can really cause no economic boom, at least not directly, since an increase in wealth never does result from destruction of goods.
Ludwig Von MisesRead