It seems to me that at least as far as the financial markets are concerned, there is increasing evidence against rational expectations, even at the macro level.

We have to be more modest in what we claim.

I think that systems that are based on employment are illogical and attempts to meet them create all sorts of unnecessary complexities.

Education is still, in spite of private education, a state matter.

Usefulness depends on tractability.

From the time I first understood economic principles, I was always concerned also that any system be operated on an efficient basis, which meant decentralization because knowledge is not concentrated anywhere. It's based on motivation, and so these are the advantages of, say, the cautious case for capitalism, that the market system is efficient.

The switch to the market in Eastern Europe, of course, has not exactly been one of the greatest advertisements for the market. There's no question the socialist system - and I hate to use the word 'socialist,' but I suppose some description of a system in which the state is in control - was breaking down, really collapsing. In these countries, most markedly in Russia itself and in a number of the others, it obviously was based on a tyranny, which is unacceptable even if it were producing good economic results, which it was not.