Saturday, October 17, 2015

The Austrian outsider

In addition to ruling the academic and professional roosts, Keynesians control the public mind. The monetarists (ie Milton Friedman) aren't impervious though, even if their spiritual leader is:

Combined interest in the Austrian triumvirate is still dwarfed in comparison to what is directed towards the princeps Keynes and Friedman:

Economics is apparently like mechanics in the sense that macro concepts are of no use explaining behavior at the micro level. To get healthier, the economy must do what wrecks the lives of individuals who do the same. A contrarian might find it curious that wisdom at the macro level paves the road to ruin at the micro level!

The 2008 recession sparked some interest in the Austrians, but it's still a school of thought existing on the fringes. I suspect the gap will narrow more when the next bubble bursts. 

No comments: