A good article by Mish:
http://globaleconomicanalysis.blogspot.com/2012/06/modern-day-economic-fairy-tale-except.html
Modern Day Fairy Tale of 3 Economic Wizards (Except It's True)
Once upon a time (today), in a land not so far away (USA), there lived a trio of economic wizards (economists), whose names shall remain anonymous (Paul Krugman, Greg Mankiw, Ben Bernanke).
A fourth wizard, Murry Rothbard, is no longer among the living but resides in the netherworld.
The above wizards seldom agree with each other because they come from competing schools of wizardry.
Three Schools of Economic Wizardry
Keynesian School of Fiscal Voodoo and Witchcraft
Monetarist School of Monetary Voodoo and Witchcraft
Austrian School of Sound Money, Sound Economic Principles and Common Sense.
"Dark Arts" Wizardry
The first two wizardry schools belong to a class of wizardry promoted to aspiring wizards as the "Dark Arts".
Philosophical Beliefs
Keynesian wizards believe governments can spend their way to economic health and although fiscal deficits may matter at some point in time, they never matter now, in practice.
Monetarist wizards believe money will cure any and every problem if enough is dropped from helicopters and interest rates held low.
Austrian wizards believe that economic problems are created by unsound money, haphazard loans, excessive debts, and government manipulations.
Keynesian and Monetarist wizards believe in the voodoo principle "the problem is the solution if only you do more of it". The former relies primarily on fiscal voodoo, the latter relies primarily on monetary voodoo.
Austrian wizards do not believe "the problem is the solution", no matter how many times it is repeated.
Grand Poobahs
Paul Krugman is the economic "Grand Poobah" of the Keynesian wizards.
The "Grand Poobah" of Monetarist Voodoo is Fed chairman Ben Bernanke.
Murray Rothbard, no longer alive, was the last great proponent of school of Sound Money, Sound Economic Principles, and Common Sense.
(Read the rest at the link)
http://globaleconomicanalysis.blogspot.com/2012/06/modern-day-economic-fairy-tale-except.html
Modern Day Fairy Tale of 3 Economic Wizards (Except It's True)
Once upon a time (today), in a land not so far away (USA), there lived a trio of economic wizards (economists), whose names shall remain anonymous (Paul Krugman, Greg Mankiw, Ben Bernanke).
A fourth wizard, Murry Rothbard, is no longer among the living but resides in the netherworld.
The above wizards seldom agree with each other because they come from competing schools of wizardry.
Three Schools of Economic Wizardry
Keynesian School of Fiscal Voodoo and Witchcraft
Monetarist School of Monetary Voodoo and Witchcraft
Austrian School of Sound Money, Sound Economic Principles and Common Sense.
"Dark Arts" Wizardry
The first two wizardry schools belong to a class of wizardry promoted to aspiring wizards as the "Dark Arts".
Philosophical Beliefs
Keynesian wizards believe governments can spend their way to economic health and although fiscal deficits may matter at some point in time, they never matter now, in practice.
Monetarist wizards believe money will cure any and every problem if enough is dropped from helicopters and interest rates held low.
Austrian wizards believe that economic problems are created by unsound money, haphazard loans, excessive debts, and government manipulations.
Keynesian and Monetarist wizards believe in the voodoo principle "the problem is the solution if only you do more of it". The former relies primarily on fiscal voodoo, the latter relies primarily on monetary voodoo.
Austrian wizards do not believe "the problem is the solution", no matter how many times it is repeated.
Grand Poobahs
Paul Krugman is the economic "Grand Poobah" of the Keynesian wizards.
The "Grand Poobah" of Monetarist Voodoo is Fed chairman Ben Bernanke.
Murray Rothbard, no longer alive, was the last great proponent of school of Sound Money, Sound Economic Principles, and Common Sense.
(Read the rest at the link)
