Clarifications of the Austro-Wicksellian Business Cycle Theory

by Mario Rizzo There has been a lively debate on forecasts of high inflation made by those worried about the Fed’s recent policy of quantitative easing. For details I refer the reader to Daniel Kuehn's excellent blog. The question to which I address myself is solely “What do these predictions have to do with core Austrian … Continue reading Clarifications of the Austro-Wicksellian Business Cycle Theory

Thanksgivings Past

by Chidem Kurdas Thanksgiving was originally a spontaneous celebration. Over time it grew into a social custom. It did not become an official holiday until Lincoln issued a Thanksgiving proclamation in 1863. Then in 1939 Franklin D. Roosevelt moved the date. New England Puritans must have needed an alternative holiday because they did not like … Continue reading Thanksgivings Past

The Second Austrian Moment

by Mario Rizzo   This is an important time for Austrians. During the Great Depression and for many years thereafter, J.M. Keynes and his followers dominated macroeconomic theory (some say they created it) as well as the conventional wisdom about the historical lessons of the Depression and the New Deal.   We are now witnessing many important … Continue reading The Second Austrian Moment

Keynes on Confidence

by Jerry O’Driscoll   Amity Shlaes has written an enlightening op ed on “FDR, Obama and ‘Confidence’” in today’s Wall Street Journal. She details how FDR destroyed investor confidence in the 1930s by his incessant attacks on business and businessmen, and by his policy inconsistency. Treasury Secretary Morgenthau at first served as FDRs “yes” man and … Continue reading Keynes on Confidence

Still Hearing Defunct Economists in the Air: Krugman’s Misplaced Attack on Hayek

by Richard Ebeling*  On July 9th, Nobel economist and New York Times columnist, Paul Krugman, gave his read on the recently unearthed letters between J. M. Keynes and F. A. Hayek in the London Times in October 1932, which have been posted and discussed on ThinkMarkets. (and in the Wall Street Journal). Krugman insists that Hayek … Continue reading Still Hearing Defunct Economists in the Air: Krugman’s Misplaced Attack on Hayek

Keynes versus Hayek: Past is Prologue

KEYNES HAYEK 1932 Cambridge vs.LSE by Mario Rizzo   My friend economist Richard Ebeling has discovered two extremely important letters. (Click the link above.) In 1932 before John Maynard Keynes’s General Theory was written, these letters appeared in The Times of London regarding the appropriate economic policies for Britain to follow during the slump.   There are … Continue reading Keynes versus Hayek: Past is Prologue

Paul Krugman, Ipse Dixit 2

by Mario Rizzo   Some time ago I wrote a post with this name.   Now Paul Krugman is at it again with his ex-cathedra pronouncements. He says that because of the recent planned move by European countries in the direction of austerity and the talk in the US about austerity, we are on the verge on … Continue reading Paul Krugman, Ipse Dixit 2

Get Real about Jobs

by Chidem Kurdas Today President Obama is holding a jobs summit, with the professed goal of soliciting ideas to encourage businesses to hire. Short-term tax credits for employers are among the measures mentioned. Yesterday here on ThinkMarkets Mario Rizzo pointed to the distorting impact of such proposals and cited Gary Becker’s argument that cutting income … Continue reading Get Real about Jobs

What Ended The Great Recession?

by Mario Rizzo   Some business forecasters with a not-too-bad record are predicting that the recession will be over by the end of the year.  (NBER dates the beginning to December 2007.)   Of course, the recovery in terms of real output from the Great Depression began in the 3Q of 1933 and that did not preclude … Continue reading What Ended The Great Recession?

Regime Uncertainty During The Great Depression

by Mario Rizzo   The destabilizing “regime uncertainty” that has been analyzed by the economist Robert Higgs was already seen after the first few years of FDR's administration by one of its most influential members, Raymond Moley.   He had been an economic advisor to Governor Alfred E. Smith of New York. He was a conservative Democrat … Continue reading Regime Uncertainty During The Great Depression