Browsing All Posts filed under »Austrian Economics«

Common Sense Economics

November 5, 2013 by


Alan Greenspan was being interviewed about his new book The Map and the Territory in Time magazine recently and responded to the question, “Knowing what you know now, what would you have done differently during your time as chairman of the Fed?”  His response was in part, “I always knew debt was important.  If I […]

The Book Of Revelation Is Hayekian

October 14, 2013 by


The Book Of Revelation Is Hayekian is the title of on op/ed interview published on Forbes last week. I found the transcript of the interview between Gregory Alan Thornbury (interviewee) and Jerry Bowyer (interviewer) fascinating. The section of the interview I included in this post highlights Thornbury and Bowyer playing off of one another to […]

Case study in Boom/Bust economics–China’s empty cities

August 22, 2013 by


The Austrian theory of the business cycle is often misunderstood as an overinvestment theory–where too much investment causes a boom, which must be corrected by a bust.  Prominent economists such as Paul Krugman characterize it this way, Call it the overinvestment theory of recessions, or “liquidationism,” or just call it the “hangover theory.” It is […]

Nanny McPhee and the Nanny State

July 12, 2013 by


Director Kirk Jones brought the award winning British actress Emma Thompson to American screens in a humorous and funky children’s tale entitled Nanny McPhee back in 2005. The context of the story is a widower with several untamed children who go through nannies like babies go through diapers. McPhee shows up announced. She is a […]

Market uncertainty w/end of QE proof of central claim of Austrian Business Cycle Theory

June 28, 2013 by


Many critics of Austrian economic theory on the causes of business cycles suggest that the lack of significant CPI-based inflation shows the Austrians are all wrong.  Yet, as I have argued earlier, CPI inflation is NOT what Austrians are concerned with.  Rather the central banks artificially lowering interest rates leads to malinvestment and a distortion […]

Paul Krugman on Cults and Economics

March 19, 2013 by


 “But woe to you, scribes and Pharisees, hypocrites, because you shut off the kingdom of heaven from people; for you do not enter in yourselves, nor do you allow those who are entering to go in. When I think about this verse from Matthew 23 of the Eight Woes, I can’t help but see some […]