Lucille
02-18-2009, 10:00 AM
The Irrational Economist (http://voxday.blogspot.com/2009/02/irrational-economist.html)
A Keynesian who rejects the Austrian theory (http://www.slate.com/id/9593) of the business cycle is no more credible than an alcoholic who doesn't believe in hangovers or a rocket scientist who doesn't believe in gravity:
[...]
It would be interesting to feed Krugman his decade-old words now, given that the Austrian-predicted "pushing on a string" problem has hit the United States and Europe as well as Japan. Japan tried to spend its way out of trouble and failed, just as Hoover and Roosevelt tried to spend the American economy out of trouble and failed. History definitively shows that Krugman is not telling the truth when he claims that government austerity was the cause of the Great Depression.
No one claims that the Austrian theory of economics is flawless. But, in objective scientific terms, as a predictive model, it is demonstrably far superior to Milton Friedman's Monetarist model as well as the Neo-Keynesian model to which this hapless would-be critic subscribes.
A Keynesian who rejects the Austrian theory (http://www.slate.com/id/9593) of the business cycle is no more credible than an alcoholic who doesn't believe in hangovers or a rocket scientist who doesn't believe in gravity:
[...]
It would be interesting to feed Krugman his decade-old words now, given that the Austrian-predicted "pushing on a string" problem has hit the United States and Europe as well as Japan. Japan tried to spend its way out of trouble and failed, just as Hoover and Roosevelt tried to spend the American economy out of trouble and failed. History definitively shows that Krugman is not telling the truth when he claims that government austerity was the cause of the Great Depression.
No one claims that the Austrian theory of economics is flawless. But, in objective scientific terms, as a predictive model, it is demonstrably far superior to Milton Friedman's Monetarist model as well as the Neo-Keynesian model to which this hapless would-be critic subscribes.