Second, how is it that the system passes periodically through major
upheavals? These problems, rather than the problem of how efficient are
the states that the economy arrives at, seem to me to pose the central
questions for macroeconomists. While the economic system and, in particular,
the financial system may give the impression that it is functioning
well, from time to time it may slide into a totally different state. What I would argue is that such movements are intrinsic and not due to some
exogenous shock. The movement and changes in the system do indeed,
come from the, at least locally, purposeful behaviour of the individuals
who make up the system. However, none of them can really be held
responsible for radical changes in the aggregate economy. As Voltaire
said, ‘In an avalanche no single snowflake feels itself to be responsible.’