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[medusala]

You don't get it, do you? The point is that the students of Austrian economics were the ones who screwed things up.

It is you who dont get it. Who are these Austrian economics disciples? Who was advocating a return to the gold standard? To targetting M3?

Even monetarism as per the early 80s was disbanded. Central banks stopped looking at the growth in the money supply.

So on monetary policy you are clearly and comprehensively wrong



http://homepage.newschool.edu/het/essays/monetarism/mpolicy.htm

Monetarism was at the height of its influence on economy policy-making in the late 1970s and early 1980s and, although it has waned considerably since, many aspects of its influence still remain in the modern policy-making.

http://www.economicshelp.org/macroeconomics/economic-growth/uk-recession-1981.html

By 1985 the govt had effectively abandoned Monetary targets

Graph of US money supply

http://en.wikipedia.org/wiki/File:Components_of_the_United_States_money_supply2.svg


What about fiscal policy? Well take Gordon Brown as a good example. Austrian School? I dont think so.

http://news.bbc.co.uk/2/hi/business/4045169.stm

Mr Brown's problem is his self-imposed "golden rule". This says that on average over the ups and downs of an economic cycle the government should only borrow to pay for investment that supposedly benefits future generations.

...
The same argument goes for Howard and Bush.

 

[placebo]

Yep, the purity of the theory.

All the evidence only serves to PROVE the theory wasn't followed correctly and that we must gird our belts and make one last push for ideological saintliness.

Its a shame economic models that run perfectly well in lecture rooms in Vienna or Chicago don't do so well in the real world.

The theory wasn't followed at all. Not incorrectly, it wasn't followed at all.

You've been continually proven wrong on this thread and yet, you continue.

 

[SweetLeftFoot]

The theory wasn't followed at all. Not incorrectly, it wasn't followed at all.

You've been continually proven wrong on this thread and yet, you continue.

You just don't see it do you? You're too blinded by your ideology.

 

[medusala]

You just don't see it do you?

I have spelled it out for you. Monetarism was massively toned down by the authorities in the 80s (and even monetarism was not exactly the Austrian position given they dont like central banks).

That is not an ideological position

It is a statement of fact.

 

[placebo]

You just don't see it do you? You're too blinded by your ideology.

See what?

It's really rather simple. You blamed the Austrian School and Free markets for the economic collapse. You were wrong.

 

[bit_pattern]

See what?

It's really rather simple. You blamed the Austrian School and Free markets for the economic collapse. You were wrong.

Do you blame Marxism for Lenin and Stalin and the USSR in general?

 

[placebo]

Do you blame Marxism for Lenin and Stalin and the USSR in general?

Ideologically, he had an effect. Do I blame Marx for everything that happened? No.
Marx furthered a collectivist morality which greatly influenced Stalin's morality. That collectivist morality was one of the main problems of Soviet Russia. Then again I could blame a lot of people for furthering that morality at the time which probably had an effect on Stalin. Ultimately Stalin and everyone that supported Stalin is responsible for what Stalin did.

I believe I already established the Marx/Stalin thing was irrelevant to the discussion though. Free Markets and the Austrian School were not followed.

 

[Clay Davis]

It is you who dont get it. Who are these Austrian economics disciples?

Alan Greenspan. He even applauded Mises et al for their contribution to the field of economics in 2000.

Who was advocating a return to the gold standard?

Alan Greenspan circa 1966.

End of discussion.

 

[Clay Davis]

Free Markets and the Austrian School were not followed.

Neither was Marx, you buffoon! That's the point SLF has been making all along.

 

[placebo]

Neither was Marx, you buffoon! That's the point SLF has been making all along.

....Which is why I said I don't blame Marx for everything that happened and that Stalin was ultimately responsible. Can you not read?

And SLF has been making the point all along that the Austrian School was to blame. That the policies enacted by the US in the last 8 years have been some distortion of the Austrian School or were at least influenced by the Austrian School. THEY WEREN'T.

 

[Clay Davis]

....Which is why I said I don't blame Marx for everything that happened and that Stalin was ultimately responsible. Can you not read?

And SLF has been making the point all along that the Austrian School was to blame. That the policies enacted by the US in the last 8 years have been some distortion of the Austrian School or were at least influenced by the Austrian School. THEY WEREN'T.

You're young and naive (no excuse for meds) so I'll explain it to you:

These perfect strands of ideology are not practical for the real world. Attempting to graft them onto the real world (as Greenspan et al attempted) leads to failure. Ideology is only perfect on paper.

 

[placebo]

You're young and naive (no excuse for meds) so I'll explain it to you:

These perfect strands of ideology are not practical for the real world. Attempting to graft them onto the real world (as Greenspan et al attempted) leads to failure. Ideology is only perfect on paper.

They attempted to graft it in to the real world by increasing regulations, increasing spending, increasing size of government, and furthering a loose monetary policy? Oh I get it, they attempted to graft it into the real world by completely going against what the theory says..yep, that makes sense.

 

[Clay Davis]

What do you mean increasing regulations? Greenspan was the driving force behind loosening regulations! He was the most hands off FRB governor in history. Do some history, little boy.

And he had nothing to do with govt spending etc.

 

[placebo]

I was talking about the economy as a whole and the role the entire government played and is currently playing in the economy.

But as for Greenspan, to say he enacted Austrian Policies is plainly false. Go read what the Austrian School has to say about him please.

 

[Chief]

Could someone suggest a thread title for the preceding pages of economic theory discussion so I can split it out into a new thread?

 

[Ice-Wolf]

How about, Economic theory: Modern Witchcraft that will destroy us all

or Economic Theory: Just cause Hitler came from Austria doesn't make them wrong all the time.

 

[medusala]

Could someone suggest a thread title for the preceding pages of economic theory discussion so I can split it out into a new thread?

Liberal economics vs Keynesian Economics

 

[Clay Davis]

Go read what the Austrian School has to say about him please.

I have, you idiot. You still don't get it.