  In Hayek’s view, the desire on the part of social scientists to emulate the physical sciences creates an exaggerated fear of teleological or “purposive” concepts. This leads many economists to eschew any reference to intentional states and to focus purely upon statistical correlations between economic variables. The problem with this focus is that it leaves the economic phenomena unintelligible. Take, for example, the movement of prices. One might notice a constant correlation between the date of the first frost and fluctuations in the price of wheat. But we do not really understand the phenomenon until it has been explained in terms of the rational actions of economic agents: an early frost reduces yields, leading to less intense price competition among suppliers, more among consumers, etc. Thus Hayek insists that, in effect, all macroeconomic analysis is incomplete in the absence of “micro” foundations.