Economist Robert Murphy on the Great Depression, and his new book.
Posts Tagged ‘Theory’
Roosevelt’s Recession of 1937
Roosevelt’s Recession of 1937, which saw the unraveling of supposed economic growth in the prior years, is oftentimes used as an historical example of what occurs when government decreases spending levels or the central bank fails to continue credit expansion. The use of this event to exemplify these things is disingenuous. More accurate lessons can be drawn, which show that only the market can fix itself.
Hayek, the Business Cycle and the Financial System
In “Monetary Theory and the Trade Cycle” Hayek holds that the business cycle is caused by fractional-reserve banking, which is a natural credit organization formed out of the market. If this is the case, then it follows that economic cycles are an intrinsic part of capitalism.
Further Considerations on the Liquidity Trap
Further considerations on the liquidity trap; a rebuttal to Daniel Kuehn.
Time-Preference and Productivity: A Reconsideration
Hayek revisits the topic of capital theory, focusing on time-preference and correcting prior “mistakes” committed in “The Pure Theory of Capital”.
Krugman on Keynes, Government and Demand
Krugman continues to show his ignorance on capital-based macroeconomics by erecting a straw man and therefore attempting to disqualify Say’s Law and the “Treasury View”. The only thing he is doing is make his own position more untenable.
The Panic of 1837 and the Contraction of 1839-43
The standard interpretation of the Panic of 1837 and subsequent recession blamed statebank monetary inflation abetted by President Jackson’s removal of the federal deposits from the Bank of the United States. Scott Trask, in a paper for the Mises Institute, offers a more Austrian explanation.
Krugman on Stimulus Size
An argument that theory has always, and will always, be superior to empiricism, as a response to Krugman’s most recent blog post.