GS: "Friedrich Hayek is generally regarded as the apostle of a brand of economics which holds that the market will assure the optimal allocation of resources — as long as the government doesn’t interfere. It is a formalized and mathematical theory, whose two main pillars are the efficient market hypothesis and the theory of rational expectations.
"This is usually called the Chicago School, and it dominates the teaching of economics in the United States. I call it market fundamentalism.
"I have an alternative interpretation — diametrically opposed to the efficient market hypothesis and rational expectations. It is built on the twin pillars of fallibility and reflexivity.
"I firmly believe these principles are in accordance with Hayek’s ideas.
"But we can’t both be right. If I am right, market fundamentalism is wrong. That means I must be able to show some inconsistency in Hayek’s ideas, which is what I propose to do."
Read the rest, Why I agree with (some of) Hayek, at Politico.
This is an eloquent and well argued presentation that George Soros made at the Cato Institute, a Libertarian bastion. I have followed this line of thought since Soros began elaborating it some time ago, and I am in accord with it on philosophical and cognitive grounds. Hayek was a good thinker, too, but his animosity for Communism made him a bit irrational, as Soros observes.