Tag Archives: Austrian

What Did Krugman Mean?

Was Krugman unambiguous in his recent criticism of Narayana Kocherlakota? Absolutely not. He equated Kocherlakota to Austrian theory, and attempted to debunk the latter with a broad, sweeping criticism of the former. Continue reading

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Further Notes on Capital Theory and Unemployment

Austrian capital theory does explain why the consumer-good industry is hit, along with the capital-good industry, during recessionary periods. Furthermore, Austrian business cycle theory is not real business cycle theory – there is a different in causation, while the latter tends to lend itself to the pitfalls of macroeconomic aggregation. Continue reading

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Unemployment in the Hangover Theory

Krugman argues that Austrian theory doesn’t explain why a fall in production occurs in sectors not directly related to the housing sector. This is untrue. Austrian capital theory explains this perfectly. Continue reading

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Rational Expectations and Austrian Theory

A defense of Austrian business cycle theory from Caplan’s rational expectations criticism. Continue reading

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DeLong on Public Expenditure and Hayek

Brad DeLong writes on freshwater and Austrian macro, baffled at why he still needs to explain why public spending is pertinent in current economic conditions. He never paused to think that maybe his own case is unconvincing. Continue reading

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Don’t Listen to Bloggers

Should the public only accept the opinion of academics? Continue reading

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Understanding Austrian Economics

After digging around the Mises Institute Dailies, I found this gem of an article (Understanding “Austrian” Economics) by Henry Hazlitt who lays down the fundamentals of what is the “Austrian School” of economics. Insofar as it is intended for laymen, … Continue reading

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Did Keynes Avoid the Austrians?

Did Keynes avoid the Austrians? No. Continue reading

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Krugman on Hayek

Krugman believes high interest rates will lead to persistently high unemployment. The Austrians respond. But, ultimately, nobody wins. Continue reading

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Unequivocal Keynesian Contributions?

I’ve been reading Daniel Kuehn’s blog for a little while now, and despite praise of prominent Austrian thinkers, Kuehn consistently bases a lot of his macroeconomic thinking off Keynes and the Keynesian picture. Now, as an undergraduate who is as … Continue reading

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