Not too bad
Only for those unfamiliar with the Austrian School of Economics ...
The Austrian School is a school of economic thought that emphasizes the spontaneous organizing power of the price mechanism.
The Austrian School was influential in the late 19th and early 20th century. Austrian contributions to mainstream economic thought include involvement in the development of the neoclassical theory of value and the subjective theory of value on which it is based, as well as contributions to the “economic calculation debate” which concerns the allocative properties of a centrally planned economy versus a decentralized free market economy.
From the middle of the 20th century onwards, it has been considered outside the mainstream.
Its name derives from the identity of its founders and early supporters, who were citizens of the old Austrian Habsburg Empire, including Carl Menger, Eugen von Böhm-Bawerk, Ludwig von Mises, and Nobel laureate Friedrich Hayek.
Currently, adherents of the Austrian School can come from any part of the world, but they are often referred to simply as Austrian economists and their work as Austrian economics.
Time to abolish the fed and institute a flat tax.
The infusion of capital would pull this country out of the chitter, quick...
Don’t get me wrong. I don’t think the Fed has totally lost its power to create mischief for the economy. If the power of central bankers to manipulate businesses through lower interest rates was diminished, the economy would be far healthier. But interest rate manipulation still will be a source of calculational chaos that will make business planning more difficult and likely lead to clustered economic errors.
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He’s so focused on the Austrian school’s emphasis on the real economy and the value of price and interest rates as signals for decision making that he’s lost track of the moneterist view. Boatloads of money will lead to inflation . . . and that screws up the price signals in the economy under the Austrian view. I’m talking off the top of my head here, but I’m reacting to his hope that awareness makes for a better situation. I don’t think it will. The Fed has one tool, the proverbial hammer, and so everything looks like a nail to them. Businesses and banks not reacting to loose money? Print more! QE2 here we come. QE3 to follow. Hyperinflation could follow as well.
This explains it as well as anything.