Lawrence White provides an outline and preview of his remarkable new book The Clash of Economic Ideas:
Lawrence White and Doug Irwin discuss alternative explanations of the depth and causes of the Great Depression:
Lawrence White on money and free banking:
Lawrence White on transitioning to a gold standard:
. . . → Read More: VIDEO Larry White on Economics, the Great Depression & the Clash of Ideas
From a 1977 interview:
” I think it is certainly true that ending an inflation need not lead to that long-lasting period of unemployment like the 1930s, because then the monetary policy was not only wrong during the boom but equally wrong during the Depression. First, they prolonged the boom and caused a worse depression, . . . → Read More: Hayek on the Fed & the Great Depression
If Hayek had know the facts, perhaps he would have located the principle source of the Depression in France, and not so much in America. Based on later, better data, Hayek concluded that the length and depth of the Depression was significantly enlarged by pathological deflationary policies — problems caused in large part by a . . . → Read More: Gold hoarding & the Great Depression
Now in English: Conversations with Great Economists: Friedrich A. Hayek, John Hicks, Nicholas Kaldor, Leonid V. Kantorovich, Joan Robinson, Paul A.Samuelson, Jan Tinbergen by Diego Pizano.
Originally published in Spanish as Dialogos Con Economistas Eminenes, (Mexico) Fondo de Cultura Economica, 1980. Preview the book at Google Books here. Buy the book from Amazon here.
The . . . → Read More: “Deflation .. Prolonged The Depression” — New Friedrich Hayek Interview
UCLA economist Lee Ohania points out that in late 1929 and early 1930 a Depression-level industrial employment crash occurred before any serious deflation or banking panic hit the U.S. economy:
Economists cite monetary contraction (Friedman and Schwartz, 1963) and banking panics (Bernanke, 1983) as important determinants of the Depression, but industry was significantly depressed before . . . → Read More: How Hoover’s Wage & Cartelisation Policies Caused the Great Depression
Economist Lawrence White weighs in on Brad DeLong’s sociopathological misrepresentation of Herbert Hoover’s Depression Economics.
“Contrary to some accounts, the Hayek–Robbins (“Austrian”) theory of the business cycle did not prescribe a monetary policy of “liquidationism” in the sense of passive indifference to sharp deflation during the early years of the Great Depression. There is no evidence that Hayek or Robbins influenced any “liquidationist” in the Hoover administration or the . . . → Read More: article: “Did Hayek and Robbins Deepen the Great Depression?”