Wednesday, July 2, 2008

Is the world Austrian?

As the global crisis continue to unfold I remember a podcast on econ talk where Pete Boettke argue that the crisis we are living now is the consequence of trying to control aggregate, that are just a proxy to the reality. Central Bank would have postponed the needed adjustment by fine tuning the aggregate, every time giving incentive for people to create new bubble.

If that's the case we need to reread Hayek and reduce economic intervention and government drastically.

Unfortunately most people will ask for the opposite, they will ask for an extension of government intervention. Which would be like giving more horse power to a blind driver.

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