24
Sep
2011
Mises Rolling Over in His Grave
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.
Pretty harmless description, and an improvement over the vast majority of journalists.
When I first saw that I actually wondered about the second sentence. I think of mutual-benefit assumption as Austrian (or Scholastic maybe).
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.
Sorry guys I pasted too much. I meant this part:
“and the policies intended to produce more booms than busts.”
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.
That was some good snark!
A bit like having more days than nights.
Giving the benefit of the doubt, presumably they mean, prolonged booms, and brief busts.
“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.