Political Theory

Re: Arnold Kling - wrong on recession?

Vichy Army — Wed, 09 Jun 2010 19:51:33 GMT

Kling, like Caplan, is a good mainstream economist; which means he is only usually wrong instead of always wrong.

Re: Arnold Kling - wrong on recession?

Smiling Dave — Wed, 09 Jun 2010 19:23:28 GMT

I always get a kick seeing this kind of thing.

Re: Arnold Kling - wrong on recession?

TenTonHorse — Wed, 09 Jun 2010 19:22:58 GMT

Thanks for your wise words. It does seem that most people outside the Austrian school are totally ignorant of the actual theory. Except for knowing about the a priori methodology and the anti-credit expansionist view, they know really little of the actual substance. Kling's view though that credit could have been more expansionary really astonished me.

Re: Arnold Kling - wrong on recession?

Bogart — Wed, 09 Jun 2010 18:32:56 GMT

Right away he is wrong about Austrian Economics. Austrian Economics only predicts that a crash will happen, it can not predict the exact timing of events other than to say sooner or later. Imminent is far to explicit of a time frame.

As for opionions on monetary policy, Austrians are against monetary policy. So they will have nothing to say about it that is good.

As for a recovery being under way, one isn't. All the little fudged and re-refudged numbers from the Government and Fed are simply propped up by devalued money and worse government give aways designed to stimulate demand which only end up in allowing too many suppliers to stay in business thus preventing the full correction from happening. As long as this is the case, recovery will not be possible.

Arnold Kling - wrong on recession?

TenTonHorse — Wed, 09 Jun 2010 15:48:06 GMT

I don't like the idea of using a single quote to undermine the credibility of an individual, but I found this from an essay entitled "The Sect of Austrian Economics", written by Arnold Kling in 2003. "Today, the Austrians believe that monetary policy has been too expansionary and that another crash is imminent. Instead, I believe that monetary policy could have been more expansionary, and a vibrant economic recovery is under way. Time will tell." Doesn't this severly undermine the Neo-Classical views that Kling and his compatriot Caplan adhere to, or does anyone know if Kling both predicted the crisis and provided an explanation after this was written in 2003? Link to article: http://www.freerepublic.com/focus/f-news/1021589/posts