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Exact(14)
His theory says that free trade automatically reshuffles a nation's factors of production to their most productive uses.
Was it allocating capital to its most productive uses?
If markets are rational, as the efficient-market hypothesis assumed, then they will allocate capital to its most productive uses.
We would not say that savings, in that case, were being mobilised to their most productive uses.
The stock market is supposed to allocate capital to its most productive uses, for example by helping companies with good ideas raise money.
It is hard to imagine that governments will do a particularly good job of allocating capital to its most productive uses, given the political pressures they will face.
Similar(46)
Unencumbered capital would flow to its most productive use, boosting economic growth and improving welfare.
Better-informed markets should ensure that resources are allocated to their most productive use.
But Twitter's most productive use has been for businesses that want to peer into the minds of their customers, reading their immediate reactions to a product.
For a market to work, capital has to be able to flow to its most productive use, so that supply can rise to meet demand.
Even so, a more efficient international capital market is supposed to ensure that capital is allocated to the most productive use.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com