Tuesday, June 3, 2014

John Maynard Keyenes on the Inflationary Credit Boom of the 1920s

He actually didn't think that it went FAR ENOUGH (he and Alvin Hansen literally going as far as to think that the government could continue to run deficits right up to the point of full employment with zero price inflation) and it was Mises and pretty much Mises only who predicted the ultimate bust....Yet another huge win for the Austrians, folks.

6 comments:

BB-Idaho said...

Yet the Austrian School doesn't seem to be gaining much traction ?

Will "take no prisoners" Hart said...

Too logical (as opposed to Keynesianism which literally says that we can deficit spend our way to prosperity and which also said that inflation and unemployment could never coincide - something that caused it to lay dormant for the better part of 3 decades).

Will "take no prisoners" Hart said...

Still not a word, wd. Not one single word.

Rational Nation USA said...

I guess in the world of continually expanding government in which people WANT their government to take more and more control it would follow Austrian Economic School wouldn't see many converts.

Yep, spend your way to full employment and prosperity. All the while keeping inflation in check.

We've pretty much become a Keynesian nation.

Will "take no prisoners" Hart said...

Wasn't it some Republican (maybe it was Greenspan) who said that, "We're all Keynesians now"?

Rational Nation USA said...

Milton Friedman, but it is not an exact qoute. You can Google it.