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« Are Performance Reviews Useful? Hmmm… NO | Main | It takes varied reiterations ... »


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At a time of active and ad hoc intervention it might helps to underline the important difference between public administration by rules and orders.


This is a good post by Dr. Boettke. The most important thing students of economics should learn (after the fundamental principles) is the history of the evolution of recent economic thought. Boettke does a nice job briefly outlining the development of Keynesian economic policies (which are not isomporphic to Keynes's economics!).

The BEST book on this topic that everyone should read can be found here: http://www.amazon.com/Economic-Thought-Since-Keynes-Dictionary/dp/0415164540/ref=cm_cr-mr-title with a review by your truly. If I recall correctly (damn my poor memory!), the authors argue that on fundamental principles the Keynesians and monetarists (and other liberal variants) are in agreement. The real debate between people like Friedman and Tobin, for example, has occured in the political context. It is hard to identify any differences between Keynesians and monetarists today over the shape of the Phillips curve, for example. This is all the more remarkable considering, according to the authors, that the monetarist counter-revolutiion, directed against Keynesian economics, has really emerged from a complete misreading (or lack of reading) of Keynes's great 1936 book. After all, what was it that led Friedman's charge against Keynesian economics --- Money matters! No real Keynesian would deny that; in fact, they never have (I refer you to Paul Davidson and the Post Keynesian literature).

Thought you'd like this Matt.

Also since you have greatly increased many things on my reading list, thought I'd give you one.
Say's Law and the Keynesian Revolution.
Thanks to Adam Martin for the pointer to the book. It greatly helped me when I first read it last year.

Thanks Ian. I just had my school library order a copy of the book; it looks good. Keep the suggestions coming!

No problem Matt. So when can we look forward to you starting a blog. You could trackback to the posts here and it will show up as a link above the comments and it will allow you to dictate the topics a little bit more to allow some better discussion. It seems you have plenty of time to write some posts, why not run your ideas through it? This would also save you time from having to type in comments as could always link to a post you wrote before.

Ah another Pete Boettke gem. Pete has this rare talent of force fitting Austrian economics into metaphors with popular films. Let's review:

1) Splash - the scientist finally shows them all wrong when he actually delivers a mermaid. How does the establishment react? "Go find us unicorn," they say.

Just sub in the business cycle of the Great Depression and we see a parallel to the Austrian school. They said it all along only to be dismissed to find the next one.

2) Just change the channel to The Princess Bride when Inigo slices the face of the six fingered man. "Offer me money, offer me power," he demands.

The six fingered man: "all that and more, anything you want."

Inigo: "I want my father back you S.O.B."

Now picture Hayek wining the Nobel prize only he says, "I want my liberty back."

No matter how hard one tries, restitution is only a proxy for the true loss that a victim endures. Somethings can never be undone.

3) And now we're given this post. I presume the economics profession as a whole are the competing gladiators. Us free market types we're not supposed to win but just entertain the political elites. But now it is our day, and what "are you not entertained?"

An honorable mention go to Ice Pirates as an example of Mengerian imputation theory.

"Economic science has been perverted, economic teachings has been perverted, economic policy has been perverted --- all by politics. To continue down our current path is to reinforce the perverse folly of politics that has threatened the viability of the current economic system."
This is the reason like others I came to GMU not to be perverted...or diverted...to focus on the BIG questions...freedom...economic crises...

I almost always realize that government policies in place to assist in state and social situations rather hinder and delay the commercial sector and the opportunities for companies, then where is the help offered to the economy?

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