Brad DeLong is deleting brief comments to his blog with the following quotes from Hayek which plainly lay out the situation as Hayek saw it, providing the background for his statements on British policy in the 1925-1936 period. These statements more than any other satisfy DeLong’s pretended interest in gaining an understanding of Hayek’s policy and economic views of the time. Evidently, because they completely undermine DeLong’s evident aim to marginalize Hayek, he won’t let them see the light of day as part of his blog entry requesting help in understanding this area of scholarship. Draw your own conclusions. Here is what DeLong does not want his visitors to read:
“The unfortunate decision taken in 1925 made a prolonged process of deflation inevitable, a process which might have been successful in maintaining the gold standard if it had been continued until a large part of the prevailing money wages had been reduced. I believe this attempt was near success when in the world crisis of 1931 England abandoned it together with the gold standard.”
And this is what DeLong doesn’t want them to watch — YouTube: Hayek on Britain & Keynes.
UPDATE: RE Brad DeLong’s repeated efforts to marginalize Hayek with fake explications, fake history, and fake scholarship — law Professor Glenn Reynolds nails it:
“Whenever anyone is effective, the lefty apparatchiks try to spread the idea that it’s somehow impolite to associate with them, rather than attack them on substance. That’s been their MO forever, but it’s become quite obvious and thus far less effective lately.”
This has forever been the MO of academics & intellectuals going after Hayek — Naomi Klein, Paul Krugman, Brad DeLong, and many others in the current period, Paul Samuelson, JM Keynes, JK Galbraith, Melvin Reder, and many others in prior years.
It’s a version of the “contaminated by genealogy” strategy for banishing rival ideas which Mises’ confronts in the first few chapters of his great Human Action.
UPDATE: A helpful discussion on the money value and supply change differences between Britain post-1925 and America post-1929 from Richard Ebeling.