Prudent economic calculation becomes more difficult as legal and regulatory regimes are subject to frequent changes and political upheaval.
Original Article:
Continuous change in the regulatory framework in which market players do business is a feature of modernity: while the perimeter of the state’s intrusiveness gets larger, rules expand and change constantly. On the other hand, every investment calls for a certain amount of calculation,1 given that business as a human activity has uncertain and risky outcomes in itself. To know the rules applicable in a precise moment is not a sufficient condition for “rational” planning if these rules will later change; in other words, a very reasonable action today could turn out to be quite unreasonable according to the