Take the case of a farmer who is trying to decide on an investment strategy for the future of his farm: should he be planting new fruit trees, purchasing new equipment, increasing (or decreasing) his livestock, or investing in new buildings? Recall, now, that our hypothetical farmer gets his grain from wholesalers who themselves bought it at prices set on financial markets, and it becomes all too clear that excessive uncertainty surrounding the price of grain will leave him unable or unwilling to experiment with new strategies. The industrialist on whom Hayek based his own reasoning is likely to suffer from a similar paralysis.
Needull in a haystack 