by Larry White published by Free Banking (August 12th, 2013)
In a blog post yesterday, entitled “Friedman and the Austrians”, Paul Krugman quotes Milton Friedman’s charge that in the “London School (really Austrian) view,” i.e. the view held by F. A. Hayek and Lionel Robbins, the depression was an inevitable result of the prior boom, that it was deepened by the attempts to prevent prices and wages from falling and firms from going bankrupt, that the monetary authorities had brought on the depression by inflationary policies before the crash and had prolonged it by “easy money” policies thereafter; that the only sound policy was to let the depression run its course, bring down money costs, and eliminate weak and unsound firms. Krugman than remarks: Continue reading …
“Friedman and the Austrians“ by Paul Krugman
The views expressed on austriancenter.com are not necessarily those of the Austrian Economics Center.
We are glad you do! Please consider donating if you want to read more articles like this one.
Comment
|
August 19th, 2013
Krugman on Friedman, Hayek, and Liquidationism
by Larry White published by Free Banking (August 12th, 2013) In […]
Author
Team AECIn a blog post yesterday, entitled “Friedman and the Austrians”, Paul Krugman quotes Milton Friedman’s charge that in the “London School (really Austrian) view,” i.e. the view held by F. A. Hayek and Lionel Robbins, the depression was an inevitable result of the prior boom, that it was deepened by the attempts to prevent prices and wages from falling and firms from going bankrupt, that the monetary authorities had brought on the depression by inflationary policies before the crash and had prolonged it by “easy money” policies thereafter; that the only sound policy was to let the depression run its course, bring down money costs, and eliminate weak and unsound firms. Krugman than remarks: Continue reading …
“Friedman and the Austrians“ by Paul Krugman
Author
View all posts
The views expressed on austriancenter.com are not necessarily those of the Austrian Economics Center.
Do you like the article?
We are glad you do! Please consider donating if you want to read more articles like this one.
Related
Comment
"The success of economies is always the division of labour"
September 26th, 2013
Comment
Is a ‘Rubber Apocalypse’ Threatening Transportation?
August 2nd, 2021
Comment
Warum unterstützen wir Diktatoren und nicht die Freiheit?
April 14th, 2014
Comment
The Great Awakening – An alternative Great Reset
February 18th, 2022
Comment
Proposed fiscal board may widen political rifts in EU
November 13th, 2015