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Just because there are two schools of thought that disagree it doesn't mean that nobody knows. Regarding the great depression, in the wikipedia article you lin
by laut 17y ago
Just because there are two schools of thought that disagree it doesn't mean that nobody knows.
Regarding the great depression, in the wikipedia article you link to, it says that the Austrian explanation is expansion of money supply not "fall of money supply".
By the way Austrian economics is not mainstream. Mainstream economics is Keynesian.
What governments are doing is following the Keynesian recommendations. The Austrian school points out the flaws of the the recommendations. They predict the failures of these measures and are ignored or ridiculed (Peter Schiff for instance). The Austrian predictions then come true. Then what do governments do? Follow the Keynesian recommendations again.
- gojomo 17y agoWell, if your culture tells you that a drought is because the gods are angry, and you must dance to bring the rains again, and you dance and the rains do not come -- you must not have danced enough yet. Dance more, and eventually the rains will return. It's always worked before.