CNBC concedes to the Austrian school of economics. This now means that the Economist in London, the New York Times and now CNBC on Wall Street are recognizing the virtues of Hayek, Mises, Menger, Rothbard, Hazlitt, and many other brilliant economists tied to the Austrian business cycle.
by John Carney
It’s no accident that Austrian economics is newly popular. It provides the best explanation for the business cycle we just lived through.
But the resurgent popularity of Austrian economics may actually be hampering the ability of the Federal Reserve to reflate the economy with low interest rate policies. Businesses, now aware of the dangers of a low inflation- sparked economic bubble, may simply be refusing to fall for the age-old boom-bust trap.