Originally posted by crazycheese
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In regard to prices computers can't work. Human Action. Ludwig von Mises, p. 211
There are monetary units and there are measurable physical units of various economic goods and of many--but not of all-services bought and sold. But the exchange ratios which we have to deal with are permanently fluctuating. There is nothing constant and invariable in them. They defy any attempt to measure them. They are not facts in the sense in which a physicist calls the establishment of the weight of a quantity of copper a fact. They are historical events, expressive of what happened once at a definite instant and under definite circumstances. The same numerical exchange ratio may appear again, but it is by no means certain whether this will really happen and, if it happens, the question is open whether this identical result was the outcome of preservation of the same circumstances or of a return to them rather than the outcome of the interplay of a very different constellation of price-determining factors. Numbers applied by acting man in economic calculation do not refer to quantities measured but the exchange ratios as they are expected--on the basis of understanding--to be realized on the markets of the future to which alone all acting is directed and which alone counts for acting man.
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