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The austrians also predicted 20 of the last 3 recessions.
by tsiki 16y ago
The austrians also predicted 20 of the last 3 recessions.
- borism 16y agothe Austrian school is not scientific, but religious branch of Economics though: http://en.wikipedia.org/wiki/Austrian_School#Criticism_of_the_Austrian_School http://en.wikipedia.org/wiki/Austrian_School#Criticism_of_th...
- iwwr 16y agoForecasting the economy is trickier than the weather, even with the advanced quantitative tools available to Economists today. Standard economic models were totally blind to the collapse. In fact, following standard models was worse than having no model at all, it created false security and hid risk from the markets. Austrians don't concern themselves too much with quantitative models because they are inherently unreliable. The main idea is that interfering in prices produces negative consequences in the same manner that any control of prices does. The Austrians are simply extending the theory of price controls to interest rates.