Maonomics: Revisiting Economic Theory behind Policy
Actually according to my read of the General Theory of Employment Interest and Money it was simply about digging holes. Sure, other types of spending are more desirable but even the digging of holes according to Keynes generates wealth and can provide an economic stimulus during a severe downturn. What I was not aware of was that the Austrian school is seriously considered at certain universities. Perhaps we should reexamine economic policy along the lines of Eugen von Bohm Bawerk, Friedrich A. Hayek, and Ludwig von Mises. What amazes me is how an economist who had to have been influenced by the Austrian school being an acolyte of Ayn Rand steadily maintained an easy money policy that has proven deleterious to this economy and has exacerbated if not contributed outright to this huge meltdown. Perhaps it is the hand in the cookie jar or the bull in the china shop syndrome. Delegating authority to manage the money stock into the hands of human beings eventually gives rise to poor judgment that may help lead to such a financial meltdown. Then the very feasibility of maintaining the Federal Reserve system is put into question.
Last edited by Skeptical Critic; 03-08-2009 at 09:34 PM..