Tag Archives | Austrian Economics

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Krugman does not understand Austrian Economics

The title should be no surprise by now.  Paul Krugman–arch-Keynesian–is once again misrepresenting what Austrian economics is. Krugman thinks the recent financial crisis can test (and prove) the superiority of Keynes prescriptions for an ailing economy. Before we delve into the specifics, consider the alternatives Krugman proposes: classical economics (he considers Austrian among them) and…
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Dollars

The Origin of Money

A few weeks ago a blogger at CNBC discussed the relative merits of Austrian monetary theory in comparison to modern monetary theory (MMT). The issue at stake is the origins of money: Austrians highlight the fact money comes into existence as the medium of exchange, while MMT points to governments requiring people to pay taxes…
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Keynesianism is Against the Law, Say’s Law

As the recession continues, economists like Laura D’Andrea Tyson, the Chair of the Council of Economic Advisors under President Clinton, advocates spending as the pathway out of our economic banana. In her latest post on the New York Times economics blog, Tyson tells us that in order for the economy to recover we need an…
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Follow-up on Slate

Krlatham’s piece on this Slate article is excellent, and exposes most of the strawmen and mischaracterizations in Yglesias’ article.  However, the article was so badly misinformed it deserves a few follow-up comments. “He was referring to so-called “Austrian economics,” an idiosyncratic passion of his and a set of beliefs that put him at odds with…
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AustrianSchool

Did The Economist Present Austrian Theory Accurately?

As krlatham pointed out yesterday, it is wonderful to see the Austrian school get a shout out in such a noted publication as The Economist. While it is true, in a sense, that all publicity is good publicity, there were some shortcomings in The Economist’s representation of Austrian theory. The author writes that “Austrians see…
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The Economist

The Economist Speaks!

http://www.economist.com/node/21542174 Is fiscal stimulus not working? Then do more of it, say the neo-chartalists. Are monopolies and price controls a problem? Then get rid of the central bank’s monopoly in setting the price of credit and the supply of government money, say the Austrians The Economist, beloved and respected throughout the profession, ridiculed by outsiders…
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