Doctrinally, "Keynesianism" would have to be regarded merely as a recent, one-way swing of the pendulum such as the world has often experienced before this time in the direction of distinct overvaluation of the possibilities and effects of monetary manipulations and alterations.
"The 'paradox of thrift' is actually an essential liquidation process that characterizes economic corrections."
"The only way to oppose a bad idea is to replace it with a good idea," Kemp said.
"This plan would also set a dangerous precedent for American industry in general."
"Costs of production do not determine prices of goods. Prices of goods determine costs of production."
"Just like Obama's and FDR's 'deals,' John Law's prescription for what ailed France required no sacrifice."
If the current level of output and employment is made to depend on inflation, a slowing down in the pace of inflation will produce recessionary sym
Hayek criticized Keynes for his neglect of the real structure of production, arguing that Keynes's predilection for concentrating on the immediate and purely monetary phenomena accompanying changes in money expenditure, together with his penchant for aggregative macro concepts (total profits, total investment), had led him into contradictory or untenable conclusions.
But if you follow the Austrian recipe of allowing liquidation of bankrupt firms and debt, allowing prices to fall without monetary inflation, not propping up employment or subsidizing unemployment, and not discouraging hoarding, you will end up with the quickest possible recovery and minimize the magnitude of economic pain.
It is perhaps the finest introduction to the thought of a major thinker ever published in the discipline of economics.
