Austrian School would be dead if not for its monetary ideas

[jueco2005]

I was recently in a discussion about different schools of economics thought ........................and there was a major agreement that if we had a free financial system (no FED) Austrians would provably be dead. The main argument is that Austrians are "too philosophical" ............mainstream economists rely too much in math, but we find Austrians in the other extreme, ignoring numbers and relying too much on philosophy.

I really don't know what to say..............but I guess Austrians credibility would be significantly decreased if had a free monetary system.

WHAT DO YOU THINK???

 

[Brandonf]

Quote from jueco2005:

I was recently in a discussion about different schools of economics thought ........................and there was a major agreement that if we had a free financial system (no FED) Austrians would provably be dead. The main argument is that Austrians are "too philosophical" ............mainstream economists rely too much in math, but we find Austrians in the other extreme, ignoring numbers and relying too much on philosophy.

I really don't know what to say..............but I guess Austrians credibility would be significantly decreased if had a free monetary system.

WHAT DO YOU THINK???

Id be inclined to agree, but the current Keynsian system has also been discredited as well.

 

[jueco2005]

Of course.

Quote from Brandonf:

Id be inclined to agree, but the current Keynsian system has also been discredited as well.

 

[krazykarl]

The FED creates amplitude in the market's moves. Don't think for a second the FED can dictate direction. What the FED can do, and often does, is provide a path of "least resistance" for markets to move to.

+1 on Austrian. Just like good traders, the FED doesn't pick tops or bottoms, it just throws its punches where it can.