24 Sep 2011

Mises Rolling Over in His Grave

Economics, Federal Reserve 8 Comments

The glib blurb from The Economist’s blog:

About Free exchange

In this blog, our correspondents consider the fluctuations in the world economy and the policies intended to produce more booms than busts. Adam Smith argued that in a free exchange both parties benefit, and this blog’s aim is to encourage a free exchange of views on economic matters.

8 Responses to “Mises Rolling Over in His Grave”

  1. AC says:

    Pretty harmless description, and an improvement over the vast majority of journalists.

  2. Papi says:

    When I first saw that I actually wondered about the second sentence. I think of mutual-benefit assumption as Austrian (or Scholastic maybe).

    • Daniel Kuehn says:

      It was a mercantilist idea too. In the long line of people that have made this observation, I don’t think anyone would give the Austrians chronological preference. Smith probably has the earliest, most modern version of the idea.

  3. Bob Murphy says:

    Sorry guys I pasted too much. I meant this part:

    “and the policies intended to produce more booms than busts.”

    • gienek says:

      Since booms are caused by scientifically conducted monetary policy and busts are a side effect of animal spirits, I say this statement is spot on.

      • Yancey Ward says:

        That was some good snark!

  4. Tel says:

    A bit like having more days than nights.

    Giving the benefit of the doubt, presumably they mean, prolonged booms, and brief busts.

    • Joseph Fetz says:

      “A bit like having more days than nights”

      Haha! I like that one.

      However, giving the benefit of the doubt, I more think that they mean more substantial booms and smaller busts. Obviously, we understand that the two are inseparable, but given the state of economics today, I think that they are looking at it more quantitatively.