Although the market, I believe, is less fragile than Arnold Kling believes it to be, this essay by Arnold on the role of contingency and fragility in the economy is packed with wisdom . It’s well worth reading in full. A slice:
These observations point toward a fundamentally novel conception of the role of economic policy, and especially economic regulation. The idea that policymakers and regulators should seek to help markets that are highly effective calculators avert predictable failures is based on a conception of the economy that could not withstand scrutiny, and that perhaps no one really believes.