The results of Europe’s experiment with austerity are in and they’re clear: it doesn’t work. Here’s how such a flawed idea became the West’s default response to financial crises.Foreign Affairs — Published by the Council on Foreign Relations
The Austerity Delusion: Why a Bad Idea Won Over the West
Mark Blyth | Professor of International Political Economy at Brown University
Brilliant historical summary.
"Despite repeated rounds of spending cuts, and despite even going off the gold standard, British debt rose from 170 percent of GDP in 1930 to 190 percent in 1933. ..."
ReplyDelete"British Debt" is not "British Debt" before and after repudiating the metals...
His analysis here does not take into account the import of the difference between a barbaric system which promises metallic convertibility vs a civilized system that repudiates metallic convertibility....
HE... DOESN'T.... GET IT.
rsp,
I noticed Bob R left a note wrt the inability of Keynesians to comprehend the Austrian beliefs:
ReplyDelete"Apparently, there is no Keynesian in the galaxy who understands Austrian concepts and/or analysis. How convenient when one's case depends upon a complete misrepresentation of the Austrians."
While Tom H remarked that this is a
"Brilliant historical summary.", many blog commenters apparently were confused. I would have learned something important if Tom H or Matt F would leave a comment at the Mark Blyth blog article. With the possible proviso that Austrian concepts are continually brought up wrt possible interpretations of current economic conditions/ policies, does it really matter how the Austrians interpret anything?