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The depression and the “Austrian” response implemented are vastly oversimplifying it. For starters the widespread tariffs and outright ban and seizure of gold s
by seibelj 6y ago
The depression and the “Austrian” response implemented are vastly oversimplifying it. For starters the widespread tariffs and outright ban and seizure of gold should tell you this is not what an Austrian would do.
- jcfrei 6y agoYou pointing out two policy measures which are not according to the Austrian school doesn't invalidate the argument that the response was Austrian rather than Keynesian. The seizure of Gold was to prevent a further contraction in credit because the dollar was still on a gold standard. I'm not defending gold confiscations (nor am I in favor of a gold standard) but without this measure the crisis would likely have been even worse. The tariffs were politically motivated (to strengthen American manufacturers - neither Keynesian nor Austrian) and intended to stoke inflation.