Krugman vs. the Austrian Theory of the Business Cycle

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Writes Michael Valdez Moses: “Always good to read your website, even (or perhaps especially) on a day that Paul Krugman wins the Nobel Prize for economics. Krugman has a predictably foolish and dishonest piece on the Austrian theory of the business cycle posted on Slate. I wouldn’t bother to mention it except for the fact that Tyler Cowen(!) provides a link to it on his web blog. Students of Mises and Hayek will hardly recognize the Austrian theory of the business cycle as Krugman describes it (or rather, misrepresents it). It would be nice to see a detailed response to and critique of Krugmans’s shameless exhibition of intellectual ineptitude.”

UPDATE Thanks to Tom Woods (and all the others who wrote) for these responses to Krugman on the ABCT: John Cochran and Roger Garrison.

UPDATE Thanks to Neal Winkler for this response from David Gordon.

2:44 pm on October 13, 2008