  The problem with ignoring the agent’s perspective, in Hayek’s view, is that it can easily lead us to overestimate our powers of rational planning and control, and thus to fall into “rationalism.” By contrast, the central virtue of methodological individualism is that it helps us to see the limitations of our own reason (Hayek 1944, 33). Formulating theories that refer directly to the “interest rate,” or “inflationary pressures,” or “the unemployment rate” can mislead us into thinking that we can manipulate these variables, and thus intervene successfully in the economy. We forget that these concepts are abstractions, used not to guide individual action, but rather to describe the net effect of millions of individual decisions. The key characteristic of methodological individualism is that it “systematically starts from the concepts which guide individuals in their actions and not from the results of their theorizing about their actions” (1942, 286). It therefore encourages, in Hayek’s view, greater modesty with respect to social planning.