Thursday, March 11, 2010
Interest Rates Redux
In two separate posts here and here, I talked about the role of artificially low interest rates on the current financial crisis. Here is a working paper by economist John P. Taylor that makes the same argument. Of course, I was only making the same argument as Hayek, whose ideas on interest rates were fairly typical of the other Austrian economists. What? The Austrian economists are right yet again?
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I read somewhere that people are up in arms because some new Texas economics textbook is covering Hayek and Friedman and using the term "free enterprise system" instead of "capitalism."
Unfortunately, I think evolution took a hit in the same wave of textbook changes. If I can find it again, I'll post the link here.
Yeah, I heard that Hayek and Friedman were included, which is great. Didn't hear about the term change, but I'm glad to hear it.
Evolution unfortunately always takes a hit in Texas. It's amazing how both sides accept spontaneous order -- but in diametrically opposite ends of the complexity spectrum.
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