The View From 1776

The Daily Socialist - 6/28/10

The Fed’s expanding the money supply adds nothing to wealth.


The more I read Paul Krugman’s columns and papers, the more I realize just how great the gulf is between Austrian and Keynesian thought. It is impossible to sum up all of the differences between the two camps, but I do think that perhaps the disparities can be summed up in the Austrian rejection of Keynes’ famous 1943 statement that expansion of credit by the central bank will create a

Posted by .(JavaScript must be enabled to view this email address) on 06/28 at 12:04 PM
  1. According to keynes, interest rates above zero are too high. Freshly printed currency is better than savings and natural capital formation. Savings in fact, should either be consumed or taxed away. Fiat money should fill the role deferred consumption/savings and investment should be directed by the taxing authorities. Aside from his counter-cyclical policy recomendations (while ignoring the fact that most of the business 'cycle' is policy driven) the rest of keynesian economics is absolute nonsense! One would need to be completely inexperienced regarding the real world in order to believe it! Only academia, bureaucracy or politics contain the true believers! Utter foolishness!
    Posted by .(JavaScript must be enabled to view this email address)  on  06/29  at  04:53 PM
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