Under central planning there are no credit standards, no interest rate risks, no market value changes, that is, none of the key financial signals that determine who gets credit, and who does not, and hence who produces what, and sells to whom, in a market economy.
15 One notable manifestation of slow productivity growth is that last year, unemployment fell significantly further than we had anticipated as of the start of the year – a pattern that occurred in the prior four years as well – whereas gross domestic product growth fell short of our expectations, as it had in three of the four prior years.