/sci/ - Science & Math

Hayek

"The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance.To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."- Paul Krugman in 2002

Yes.

Honestly, I cant wait util the day comes that we stop calling it "Austrian economics" and just call it "economics", it is the truth, and everything is a joke.