The State of the Economy

Most economists think that macroeconomic disruptions, such as the current recession, can be understood in terms of aggregate indicators such as total employment, the price level, and the money supply. But this view is misleading, particularly in the current economic situation. Worse yet, it misleads us into counterproductive economic policies.

via The Poverty of Stimulus – Project Syndicate.

If you’ve read me for any time at all, you know that I believe the Austrian perspective on economics is correct. But I must admit that the Austrian view is often expressed in an off-putting fashion. Some of this is due to the unique terminology (Mises’ erratic command of English resulted in odd terms like malinvestment and long tangled Germanic sentences that can confuse even the most dedicated reader) and some is due to the next generation’s flaming radicalism (Anarchy? No thanks!) So it’s refreshing to read a clearly Austrian perspective in more or less plain English. It’s common sense rigorously applied. Enjoy.

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