Phillip Baggus, David Howden, "Deep Freeze: Iceland's Economic Collapse"
Publisher: Ludwig von Mises Institute | ISBN: 1933550341 | edition 2011 | PDF | 144 pages | 18.7 mb
Publisher: Ludwig von Mises Institute | ISBN: 1933550341 | edition 2011 | PDF | 144 pages | 18.7 mb
The two young Professors Bagus and Howden document the sad story of the Icelandic government’s policy mistakes — the artificial creation of a boom, and the savage bust that was the inevitable outcome of this boom.
Lttle have we learned since the wisdom of Mises and Hayek showed us the way concerning business cycle theory. The former are intellectual heirs of the latter two giants of 20th century economics and they present the case of the small nation of Iceland, within the context of the global economy, analyzed via the lens of what has become know as the Austrian Theory of the Business Cycle, extremely well here.
This is a short book and I hope it will encourage others to write about other bigger nations: after all, we are all very much interdependent. I hope they will write via the insights of the great teachers of the Austrian School. For the majority of economists who assume that the marginal revolution has all been absorbed into mainstream economics and that the Austrian School has nothing to add on the matter, I would urge them to pause and reflect on the Austrian theory of the business cycle — the case-proven status of it as outlined in this book — with reference to Iceland and think about what they are doing when they advise governments to artificially “stimulate demand.”
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