Thursday, June 18, 2009

Paul Krugman refutes Austrian view of RGD1

Paul Krugman refutes Austrian economics view of the 1930s Republican Great Depression. The Austrian (Libertarians, Ron Paul heads, Peter Schiff, etc) would say that Fed Gov response made the Depression worse, but Krugman/Keynesian shows that lack of Fed Gov response from Repub Pres Hoover in 1929 when RGD1 started actually did make the Depression worse. Plus Krugman highlights some illogical aspects of the Austrian explanation wrt RGD1

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