by Thomas McQuade Here’s what Alice might have recited to the Caterpillar, had Charles Dodgson been a 20th century economist of sorts: You are old, Maynard Keynes, and your theory’s askew, It’s easy for one to see through it – Yet everyone thinks that you’ve said something new. Just how did you manage to do … Continue reading Hayek and Keynes Debating in Wonderland
by Mario Rizzo In March of this year Brad DeLong wrote a post called “More from the History of Economic Thought: John Stuart Mill Contra Say's Law, 1844” It contained a long quotation from John Stuart Mill from his essay “Of the Influence of Consumption on Production,” in Some Unsettled Questions of Political Economy (1844, … Continue reading Brad DeLong Should Read More
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
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
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
Do we have more evidence of the continuing great debate between Hayek and Keynes? In the now "famous" 1932 letter to The Times of London signed by F.A. Hayek, Lionel Robbins, T. E. Gregory and Arnold Plant, we read: The signatories of the letter referred to [by Keynes, Pigou et al.], however, appear to deprecate … Continue reading F.A. Hayek and Tyler Cowen
by Mario Rizzo The discussion of the Hayek-Keynes letters of 1932 in The Times of London continues in 2010 in the Wall Street Journal in today's issue. The opinion piece is by Jerry O'Driscoll, a frequent blogger at ThinkMarkets. My previous TM discussion is here. Update: For the ungated version of the WSJ article, place the … Continue reading Hayek versus Keynes in the Wall Street Journal
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
by Mario Rizzo Paul Krugman continues to invoke Keynes’s famous statement. I wish Krugman and others would give some serious thought about what it is supposed to mean and the errors it involves. In the first place, Keynes was complaining about the “classical” economics, that is, the ideas of the economists before him who believed that … Continue reading “In the Long Run We Are All Dead” What Does It Mean?
by Mario Rizzo There seems to be broad agreement among economists that the current recovery from the recession will be characterized by a slowly falling unemployment rate. This makes a good deal of sense since the problem that created the recession was a misdirection of resources into a number of sectors including housing construction and … Continue reading The Fed’s Coming Indiscretion?