Talented mainstream economists like William White, chief economist of the Bank of International Settlement, used “Austrian” thinking about the relation between monetary and fiscal policy and the time structure of production and investment as part of their modeling strategy to warn about the massive and unsustainable disequilibrium building in the economy across the 2000’s — and the inevitability of the coming bust. This fact has a lot of people worked up — people with little or no understanding of Hayekian economics are now flailing about attempting to come to terms the economics of the economists who told everyone in advance what turned out to happen. Some of these folks are genuinely sincere in their efforts to understand this alien microeconomic-based approach to macroeconomic problems. Others, let us say, are a bit more ideologically motivated in their “investigations”. All of them, I would suggestion, could do better reading the work of Lawrence White, Roger Garrison, George Selgin, Steve Horwitz, and other, rather than what many of them are trying to do, which is pick up “Austrian” economics from blog post commenters and, well, guessing. Read the real stuff, guys.
If anyone has any other links or tips to economists attempting to come to grips with the alien economics of Hayek and the Austrian, send me a heads up or let us all know about it in the comments section.