3 ms·

Aside from the fact that my core point was about the fact that the present system didn't even exist in 1963 for Rothbard to get angry about it, the Mises Austri

Aside from the fact that my core point was about the fact that the present system didn't even exist in 1963 for Rothbard to get angry about it, the Mises Austrians' habit of making annual predictions of imminent hyperinflation - something which has still never happened in the US - is hardly a track record that compares favourably with more mainstream economists! Oh, and the current level of price rises? Had it on numerous occasions in the 19th century under the deregulated banking system notionally pegged to gold that Mises and Rothbard fetishised, followed by even more destructive deflation cycles. Plus higher interest rates than the "overtightening"

caeril 4y ago
Fair points. Maybe the entirety of economics should rightly be considered the voodoo psuedoscience that it is.
- G3rn0ti 4y ago
  Guys, I recommended the book because I believe it gives a rather good introduction to the fundamentals of money and banking, even though its title is designed to catch your attention. I am _not_ claiming it's the ultimate source of truth, of course, and sure enough, there is this whole "classical economists" (aka "Austrian" school) vs "Chicago school" (aka "monetarists") going on behind the scenes suggesting other books as well... Regarding this whole battle I'd say the monetarists should be able to sleep well, since they dominate all economics anyway these days. Neoclassical economics is all about empirical research, quantitative predictions and tests. Insofar it is, of course, a real science and they certainly can do good research. However, economic policies are rarely evaluated empirically and are usually not justified by real research. And let's face it: the FED's policies are ultimately done do serve the government only (even if it is formally "independent"), since it is a government drowning in debts that profits the most from cheap money unlike its citizens. Austrians do "economic research" by logical reasoning alone in the tradition of the humanities. They might not publish econometric models but they are able to explain and reason about fundamental economic facts with great clarity unlike most modern economists. This becomes especially obvious when it comes to monetary policies. Hence, in any economic crisis I recommend reading "Austrian" books because they are able to teach a valuable lesson.

caeril 4y ago

Fair points. Maybe the entirety of economics should rightly be considered the voodoo psuedoscience that it is.

G3rn0ti 4y ago
Guys, I recommended the book because I believe it gives a rather good introduction to the fundamentals of money and banking, even though its title is designed to catch your attention. I am _not_ claiming it's the ultimate source of truth, of course, and sure enough, there is this whole "classical economists" (aka "Austrian" school) vs "Chicago school" (aka "monetarists") going on behind the scenes suggesting other books as well... Regarding this whole battle I'd say the monetarists should be able to sleep well, since they dominate all economics anyway these days. Neoclassical economics is all about empirical research, quantitative predictions and tests. Insofar it is, of course, a real science and they certainly can do good research. However, economic policies are rarely evaluated empirically and are usually not justified by real research. And let's face it: the FED's policies are ultimately done do serve the government only (even if it is formally "independent"), since it is a government drowning in debts that profits the most from cheap money unlike its citizens. Austrians do "economic research" by logical reasoning alone in the tradition of the humanities. They might not publish econometric models but they are able to explain and reason about fundamental economic facts with great clarity unlike most modern economists. This becomes especially obvious when it comes to monetary policies. Hence, in any economic crisis I recommend reading "Austrian" books because they are able to teach a valuable lesson.