Axel Leijonhufvud on the Causes of the Current Crisis

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.”

Posted in Boom & Bust | 1 Comment

VIDEO – William White at the Berlin INET Conference

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 here.

Posted in Boom & Bust | 1 Comment

Google De-Lists “Taking Hayek Seriously”

Taking Hayek Seriously has been removed from Google search engine results.

Anyone have any idea why that would have happened?

Posted in Tweets | 2 Comments

VIDEO: Ideas Having Sex – How the Extensive Exchange of Objects Leads to Innovation

Posted in Tweets | Comments Off

I Love This Video! — Economics is NOT a science like physics & astronomy

I would just add: economics IS a science, like Darwinian biology, global brain theory, and other essentially complex sciences.

Posted in Philosophy of Science | 1 Comment

F. A, Hayek vs the Efficient Markets Hypothesis

“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

Posted in Tweets | 3 Comments