Austrian economist Friedrich Hayek is making a comeback and some of his ideas would provide great alternatives to the policies currently pursued by the Obama administration, says economist Russ Roberts in a recent Wall Street Journal article.
According to Roberts, Hayek highlighted the Fed’s role in the business cycle:
Another timely idea of Hayek’s, says Roberts, is that order can emerge not just from the top down but from the bottom up:
Meanwhile, over at the New York Times, Nobel prize-winning economist Paul Krugman laments the lack of government intervention. Around the world, he says, governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending.
More importantly, Krugman says the United States is in the “early stages of a third Great Depression.” If he’s right, it’s only because American policymakers have been following his advice, says Investor’s Business Daily.
Source: Veronique de Rugy, Hayek’s Timely Comeback, National Review, June 28, 2010.
For text: http://corner.nationalreview.com/post/?q=YzQ3MDY5MDEzYTg5Y2E5Yzc5NTQ5ZTJkNWEwNWFhZjc
For Wall Street Journal text: http://online.wsj.com/article/SB10001424052748704911704575326500718166146.html
For New York Times text: http://www.nytimes.com/2010/06/28/opinion/28krugman.html
For IBD text: http://www.investors.com/NewsAndAnalysis/Article/538727/201006281830/Krugmans-Depression.aspx
For more on Government Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=33
First published by the National Center for Policy Analysis, United States
FMF Policy Bulletin/ 06 July 2010
