Archive for Austrian School

A Policy Proposal That All Economic Schools of Thought Should Prefer to the Status Quo

[UPDATES in the middle and then at the end.] Once again, Nick Rowe has argued that according to the very model that Paul Krugman claims to be using–and I mean here, the full-blown model with intertemporal optimization, not the cruder IS/LM model that Krugman thinks gives surprisingly good policy recommendations, using the full-blown model as […]

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Answering David Friedman’s Questions About Austrian Economics

[UPDATE below, then UPDATE #2.] In a recent post, David Friedman writes: Yesterday I spoke at a Students for Liberty Conference. Before the talk I had a conversation with several students who identified themselves as supporters of the Austrian school of economics. I asked them if they could explain what that meant by identifying a […]

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Explaining the Success of the Keynesian Revolution

A lot of times Austrian economists will say that the Austrians used to be really popular and influential, but that they were eclipsed by the Keynesians in the 1930s. Then they might explain this outcome along the lines of, “The Keynesian economists told government officials exactly what they wanted to hear: spend more money to […]

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