I am trying to figure out how to work this into the study guide on Mises’ Theory of Money and Credit, but I don’t think I can. So, I share it with you. On page 125 of the LvMI’s latest edition, Mises says that only by acknowledging that money’s value derives not just from its industrial uses, but also its role as a medium of exchange, can one explain “phenomena such as the Austrian or Indian currency systems.” Then he says:
The naivety of the numerous writings which attacked this opinion and their complete freedom from the restraining influence of any sort of knowledge of the theory of value may occasionally lead the economist to regard them as unimportant; but they may at least claim to have performed the service of shaking deep-rooted prejudices and stimulating a general interest in the problem of prices.
I realize I am biased, but I think even Mises’ insults are cooler than Krugman’s.