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Steve Horwitz
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Murray doing his best Jackie Mason. If that was filmed in the Catskills, it would be even better!
In other words, Troy, as Art and I say in the piece: "Note that externality problems are market "failures" only in comparison to the perfectly competitive model's equilibrium. In other words, the "failure" here is not that markets "do not work" in practice, but that they fail to live up to a blackboard ideal. As it turns out, by that criterion, markets "fail" all the time! No actual market is ever in perfectly competitive equilibrium, not even the commodity markets we sometimes point to in introductory courses."
Yeah, I can't for the life of me imagine why you've been banned at multiple places....
Pfloyd: http://blog.independent.org/2011/09/23/the-stagnant-u-s-economy-a-graphical-complement-to-higgs-contributions/
Toggle Commented Feb 11, 2013 on My Boudreaux Impersonation at Coordination Problem
Not quite Daniel. At least the Austrian claim is not that recalculation "incited" the downturn, but that the length and depth of the downturn will be related to the degree of recalculation must take place. And as Tyler rightly points out, one can believe that it is both necessary to ensure that "aggregate demand" (I'd rather say MV) is stabilized and best if markets drive the process of recalculation that is required to come out of the slump. I think, as Tyler also said, that was Hayek's view in, say, *Prices and Production* if not later. I'd also say it's the position that Austrians like me, Selgin, White, Garrison, hold to today. Some other Austrians, not so much. The Austrian objection, from my perspective, is not to stabilizing aggregate demand per se, but to the ways in which many policies, especially fiscal ones, designed to increase aggregate demand themselves block the needed recalculation process.
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Which is why I was very careful to say "Keynesian" and attempt to avoid the issue of whether Keynes himself was a "Keynesian."
Toggle Commented Dec 10, 2010 on Consumerism and Keynesianism at Coordination Problem
Jesus Huerta de Soto's recent book on Austrian economics, which is also designed as an intro/primer, suffers from exactly the same problem: it's as if Austrian economics ended sometime in the early 80s, if not earlier (with Kirzner in the 70s). JHdS's book also has a more Rothbardian take on monetary theory that I think is wrong, but it's certainly part of the Austrian school.
Toggle Commented Aug 19, 2010 on Austrian Economics - A Primer at The Filter^