The Austrian Business Cycle Theory states that entrepreneurs are not able to distinguish between money that comes from genuine savings and money created through credit expansion by the Fed. But surely the Fed keeps track of how much money they loan into existence.. If entrepreneurs know this, shouldn't they be able to adjust the interest rate appropriately and not be fooled into malinvestments?
I know there are holes in this argument, but I'm having trouble putting together a cohesive counter-argument in my head..
Well, Esuric, glad to see we agree.
hayek is probably way beyond my powers. I'm more a 3 stooges kind of guy. But thx for the suggestion.
My humble blog
It's easy to refute an argument if you first misrepresent it. William Keizer
What do you mean? Re-read my comment, I edited it.
"If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion."
Prash your saying the same thing only in a different way.
filc, okay!