Business cycles are well understood. They are not a natural consequence of capitalism but instead from central bank manipulation of credit…. The next downturn, likewise, will be the fault of the Fed…. The silly notion that money can be created at will by a printing press or through computer entries is eagerly accepted by the majority as an easy road to riches, while ignoring any need for austerity, hard work, saving, and a truly free market economy…. But that’s a fallacy. There is always a cost. Artificially low interest rates prompt lower savings, over-capacity expansion, malinvestment, excessive borrowing, speculation, and price increases in various segments of the economy – Ron Paul

Reading an e-book entitled ‘Ron Paul vs. Paul Krugman: Austrian vs. Keynesian economics in the financial crisis’. Some interesting comparisons, found this particular quote interesting.

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One thought on “Austrian Economics

  1. The empirical vindication of the ABCT is mixed at the very best, and most of the studies supporting it don’t leave Austrian peer review and are overly simplistic in their modeling

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