Tag Archives: Theory

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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Affording the Unemployed

“Affording the Unemployed”, my latest article at Mises Daily. Also, some thoughts on the insider-outsider theory of unemployment. Continue reading

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Hayek’s Pure Theory of Capital Vol. 2

Hayek’s Pure Theory of Capital was meant to be a two-volume series. As we know, the second volume was never written. This has to do with the complexity of the topic covered. Unfortunately, however, since the publication of The Pure Theory of Capital, not much work has been put into expounding the theory further. 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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Did Keynes Avoid the Austrians?

Did Keynes avoid the Austrians? No. Continue reading

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Gold Standard, Not God Standard

An increase in gold specie can cause a business cycle. Continue reading

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Empirical Evidence for Austrian Theory

Graph showing greater drop in producer goods industry, rather than consumer goods. Continue reading

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