I just saw somebody on the “scienceforum” I used to frequent bring out this crap by the one and only Krugmeister: "My view is that the fatal flaw in Austrian economics is that it can’t explain unemployment — or, worse, that it thinks that it can explain unemployment, but is deluding itself. The Aus…

Jeffrey blogged about it with a Mises Daily by Murphy from 2008. http://blog.mises.org/12413/krugman-yet-again/

As far as the employment thing goes, I’m no econ master, but just because the bubble occurred in assets doesn’t mean that more money wasn’t also being spent on goods and services. So it makes sense that a lot of people would have jobs in sectors that weren’t as bubblified (yes I said bubblified) as …

I’m not going to lie, even though he speaks in a lofty and high and mighty tone and always derides Austrian economics, he has raised some good points in the past. I think people are incorrect to simply dismiss Krugman simply because “hes a lefty” and “with the media”. As what was said before, durin…

It’s sad that arguments on both sides (on most sides in economics it seems) are rhetorical and speculative rather than evidence based. It should be relatively simple to compare an economic freedom index to an employment level index and compare and contrast from that as a starting point…

Personally, I think Krugman is misunderstanding the Austrain argument, but it really isn’t his fault. Austrians spend so much time trying to “refute” Keynes it leaves the impression that their business cycle theory hinges on some aspect or fluctuations in aggregate demand. In reality, Austrian theor…

This is a classic Keynesian style argument. Krugman doesn’t even address the Austrian understanding of the financial crisis directly (because the evidence is in our favor), but brings in a red herring of unemployment then ties it to the financial crisis.

W.H. Hutt in A Rehabilitation of Say’s Law long ago answered the unemployment argument. In fact, Luigi Einaudi, citing Machlup (while the latter was still purely Misesian), managed to in an essay entitled ‘My Plan is Not Keynes’s’, written just after Keynes books in the 1920’s and 1930’s, but prior …

Indeed. One of the early critiques of the ABCT, which was rather good (but still invalid), is that increased investment (brought about by reduced market rates of interest) would actually increase the capital stock, which would push the natural rate down to the market rate, restoring equilibrium (bu…

Most economists which suggest real business cycles use: differential equations to form a continuous model, a typical homogenous capital, a typical homogenuous consumer, a typical time preference rate B, an a single autoregressor to introduce a shock to the economy. They do not consider govern…

Krugman claims Austrians can't explain unemployment

Economics Economics Questions

wilderness April 9, 2010, 8:28pm 38

lol… This thread might link up with the robot thread and the D/C comic thread soon enough.

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Krugman claims Austrians can't explain unemployment

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