Paul Samuelson is the one who laid the theoretical foundation for this systemic anarchy. Milton Friedman then provided the emperor's new clothes, dressing it in the garb of neoliberalism. That is how these two leading figures in American economic thought were united in unleashing on the world community the system that has now collapsed.
Brad DeLong and Paul Krugman continue to mock the Austrian explanation for the business cycle, but their ridicule is based on their own deficient model of the economy's capital structure.
By flooding the credit markets with money created out of thin air, the central banks of the world are interfering with humans' attempts to communicate with each other after the housing bubble popped.
I am tired of hearing economists argue that government and the Fed should expand credit for the good of the economy.
What permits real economic growth is an improvement in the investment infrastructure of the production process. What makes the improvement possible is real savings.
Equity markets have collapsed in value, bond yields are off, real-estate markets are (in many places) in a state of disarray, monetary devaluation
Presented at the Mises Institute’s first conference, November 16-17, 1983; in Washington, DC.
1996 Mises Institute Supporters Summit, San Francisco, California; February 9-10, 1996.
1998 Mises Institute Supporters Summit, Palm Springs, California; February 27-28, 1998.
