From Axel Leijonhufvud’s INET Berlin paper
“The Unstable Web of Contracts”:
“The bubble that burst was caused by a lengthy period of interest rates that were too low. We are now trying to cure the consequences by maintaining still lower interest rates for a lengthy period.6
6Ludwig Mises and Friedrich Hayek would have told us that this is not a good idea.”
Beginning at about the 5:30 mark former BIS chief economists William White explains why the Keynesian “solution” has failed and why the “Hayek vs Keynes” debate is one again:
I’d also recommend Roman Frydman’s case against the Phelps / Lucas macroeconomic modeling strategy, for those with a technical / mathematical bent:
And an excellent comment at 8:00 from Nancy Cartwright on the undefended assumption that math probabilities constructed by economic professors have any application in actual reality:
All videos from the first day of the Berlin INET conference can be found
Taking Hayek Seriously has been removed from Google search engine results.
Anyone have any idea why that would have happened?
I would just add: economics IS a science, like Darwinian biology, global brain theory, and other essentially complex sciences.
“The general fact that booms have always appeared with a great increase of investment, a large part of which proved to be erroneous [is part of the basis for asserting that expectations regarding the future can be systematically mistaken].” — F. A. Hayek