Monetary Calculation and Mises's Critique of Planning

Over the last decade or so, there has been a renewed interest in the problems of economic calculation under socialism and a rethinking of the classic socialist calculation debate of the interwar era. A great deal of this work has been stimulated by Don Lavoie's (1985) reinterpretation of the debate that suggested a fundamental misunderstanding of the Austrian argument. In addition, the general growth of interest in Austrian economics since the mid-1970s, as well as the increasingly obvious failures of the so-called planned economies of Eastern Europe and the former Soviet Union, surely has played a role in the increased attention paid to these topics. Although the general consensus of the literature since Lavoie's book has been that the Austrians were largely correct,' not all of the writers have understood the full depth of the Mises-Hayek argument and its