On Oct 21, 2010, at 11:35 PM, Jeffrey Fisher wrote:
> Maybe I wasn't clear about this, or maybe it's an obnoxious question, and I
> should just go read the book, but I'm not sure that would help me. I'm
> trying to understand, *if* the guy accurately predicted the bust, do we have
> a way of explaining how his paradigm is wrong but his results were right
> (this time)?
I'll be charitable and say that Austrian economics has a point or two. Extended credit booms end in sadness. But where I think they're wrong is seeing deficit spending in a bust like this as also inflationary. He sees/they see no risk in deflation - recall that he said that deflation is a good thing. That's bonkers.
Doug