video: Arnold Kling & Mark Thoma Independently Rediscover Hayekian Macro

April 23, 2009 | Posted by Greg Ransom

1 comment

Lee Kelly says:

April 24, 2009 at 11:03 pm

Booms destroy knowledge. It is like getting lost. If you have only passed fork in road, all you need to do is go back and take the other path. But if you have passed one hundred forks in the road, who knows how many wrong turns were taken or where? Booms gradually divorces our picture of the economy from reality. The bigger the boom, the more our knowledge has been corrupted, and the more difficult, painful, and prolonged is the process of correction. Resources, like labour, cannot be so quickly reinvested as in ordinary times, because few people know what to do instead.