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14 July 2009
The Second Coming of Keynes
Paul Krugman wants to be our savior. Moreover, he wants to be a specific kind of savior: a magus of the scientific age, a blackboard prophet. The roots of this curious ambition can be seen in his recent profile in Newsweek : Krugman says he found himself in the science fiction of Isaac Asimov, especially... Read More...
27 June 2009
The ABCT Shadowed Forth
Ludwig von Mises is credited with first formulating the Austrian Theory of the Business Cycle. But in the following much earlier passage by Eugen von Bohm-Bawerk (who was a great influence on Mises) one can see the theory shadowed forth. Bohm-Bawerk considers below what would happen if, for some reason... Read More...
24 June 2009
Krugman's Rearguard Apologists
As most readers will know, a collection of damning quotes has surfaced recently, exposing Paul Krugman, the doyen of the economic left, as having been completely backward on the most material economic event in our generation: the housing bubble. My recent article on the subject, Krugman's Intellectual... Read More...
19 June 2009
My Take on the ABCT: Objections Considered
Referring to the ideas presented in My Take on the ABCT (Simple Version) and My Take on the ABCT (Complex Version) , a Mises Forum member wrote... Wrong. What you're describing is a credit cycle. It implies that all the government needs to do is to keep interest rates low. During a boom/bust cycle... Read More...
19 June 2009
My Take on the ABCT (Complex Version)
Business Cycle Stages 1. Money Supply Increase causes a general 2. (a) Credit Supply Increase and an ongoing (b) Purchasing Power of Money Decrease. 2(a) causes a general 3. Interest Rate Decrease , w hich causes a general 4. (a) Longer Term Investment Increase , and, aided by 2(b), a (b) Sharp Demand... Read More...
19 June 2009
My Take on the ABCT (Simple Version)
Below is my take on the Austrian Business Cycle Theory. Stages 1. Money Supply Increase causes a general 2. Credit Supply Increase , which causes a general 3. Interest Rate Decrease , which causes a general 4. Longer Term Investment Increase , which causes a general 5. (a) Demand for Labor Increase and... Read More...
19 June 2009
Sound Money is the Only Solution
Economics is seen by most as a something best left to the experts. But have so much trust when it becomes obvious that "the experts" are completely clueless? Almost every economist was completely by surprise by the development of the economic crisis. And the solutions they are offering don't... Read More...