I’ve just read Nouriel Roubini sub-chapter on “Austrian Economics” from his book Crisis Economics, and it must be said that the thing is an embarrassment of faked “scholarship”. It’s painfully obvious that man knows next nothing of the work of Friedrich Hayek on money and trade cycle theory, nor does he know the work of Horwitz, Garrison , White, or anyone else. He’s passing himself of as an “authority” when he reports barely more than false rumors of the sort economists pick up at the bar during AEA meetings.
Case in point of Rubini’s bogosity — Hayek, Horwitz and White endorse as a matter of consistent theory efforts to maintain the money supply and fight the post bust deflationary contraction — and as early as 1932 and as late as the 1980s Hayek endorsed public works projects and other “Keynesian” measures to provide relief to the working man, and counter-act the deflationary contraction.
Rubini is simply bluffing and passing himself off as an authority, when on this topic he’s a fake.