13 Jan 2009

Bernanke Gets a C- For His Answer on the Austrian School

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This is pretty funny. Reader Zach Kurtz alerted me to this Q&A where a Human Events guy (at around 2:05) asks Bernanke why they are pursuing Keynesian remedies, rather than Austrian ones. And like an undergrad who didn’t study for the test, Bernanke just mentions that the Austrians believed in the aggregation of information (he means Hayek’s point that prices communicate dispersed information so everybody correctly takes into account the system-wide scarcity), but he totally dodges the actual question. And like a really bad student, he rambles on and on instead of admitting he can’t (or won’t) answer the question. I had to turn the thing off at the 6:00 mark.

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