The Wall Street Journal in its Letters section today has two good comments on Ruchir Sharma’s “How Spending Sapped the Global Recovery,” (op-ed, Jan. 16). The on-line teaser, “Nothing to Lose but Our Keynes: Government spending on infrastructure is only worth doing if it enables future value creation by the private sector.”

Popular opinion seems to be that falling prices–or even stable prices–are bad for the economy, but I’ve never seen any good arguments about why.  I probably don’t need to convince followers of the Austrian school that prices work best when they reflect the underlying values of the things that are priced, but I’ve just read another article about the problems that come with deflation that gives six clearly numbered reasons.  Let’s look at what the article says to see i

When L.H. White writes, people read!

Larry White has just released a must read working paper on SSRN, “Hayek and Contemporary Macroeconomics”. While the abstract is not optimistic, the paper actually provides much to encourage those pursing a capital-structure based macroeconomics and working to apply Austrian business cycle theory (ABCT) to current macroeconomic issues and policies. The abstract:

[This interview is from the December issue of The Free Market.]

Mises Institute: You recently retired after a long time at Metropolitan State University of Denver, where you were both an economics professor and the dean of the Business School. How did you end up there, and end up as dean?