John Taylor, once consider a possible Greenspan successor, has blasted the Fed for running what he he calls Mondustrial Policy, which amounts to picking winners and losers in the marketplace via monetary policy. Taylor is not an Austrian but at least he is aware that too much pumping is bad news.

The costs of the Great War were truly astronomical. As with the number of stars, the final accounting is in God’s hands. The slaughters, the treasure, the faith in some kind of order of society—all of these were costs of the war.

Although many free-market economists were aghast that Paul Krugman won the Nobel (Memorial) Prize in Economics, I have come to realize that he is every bit as brilliant as that august award indicates.

The direction of all economic affairs is in the market society a task of the entrepreneurs. Theirs is the control of production. They are at the helm and steer the ship. A superficial observer would believe that they are supreme. But they are not. They are bound to obey unconditionally the captain’s orders. The captain is the consumer. Neither the entrepreneurs nor the farmers nor the capitalists determine what has to be produced. The consumers do that.

Even though Paul Krugman on many occasions has trashed Austrian Economics, nonetheless he is not afraid to take an a priori position on his “pet stimulus.” Unfortunately, he refers to “Okun’s Law” which really is no “law” at all, but rather a empirical proposition based upon government-created aggregates.