Complex capital structure leads to economic boom and bust cycles
The article discusses how the structure of an economy's capital goods affects its ability to coordinate economic plans over time. It argues that the complexity of coordinating these plans leads to issues like boom-and-bust cycles. The researchers explore how the problem of economic calculation is crucial in understanding the challenges of socialist economic planning. They emphasize the importance of recognizing that an economy consists of diverse goods with specific uses when considering the feasibility of socialist planning.