Look: I am eager to learn stuff I don't know--which requires actively courting and posting smart disagreement.

But as you will understand, I don't like to post things that mischaracterize and are aimed to mislead.

-- Brad Delong

Copyright Notice

Everything that appears on this blog is the copyrighted property of somebody. Often, but not always, that somebody is me. For things that are not mine, I either have obtained permission, or claim fair use. Feel free to quote me, but attribute, please. My photos and poetry are dear to my heart, and may not be used without permission. Ditto, my other intellectual property, such as charts and graphs. I'm probably willing to share. Let's talk. Violators will be damned for all eternity to the circle of hell populated by Rosanne Barr, Lady Gaga, and trombonists who are unable play in tune. You cannot possibly imagine the agony. If you have a question, email me: jazzbumpa@gmail.com. I'll answer when I feel like it. Cheers!

Sunday, February 5, 2012

Revisiting the 1920-21 Depression

I've looked a this before, here, here, here, here, and here.

I am very happy to see my take validated, and the Austrian case rebutted by David Glasner.  He links to a short, fact-filled Journal article by David Kuehn that totally blows up the Austrian case that the 1920-21 event refutes the Keynesian approach of the 30's.

To summarize -

-  The Austrians have the historical facts wrong about 1920-21.
-  The 1920-21 depression was a supply-induced event, while the 1929-on depression was an aggregate demand shortfall event, as was the 2008-on Great Recession.
-  Fundamentally different problems arising in fundamentally different circumstances call for fundamentally different policy solutions.

Glasner and Keuhn are both very polite and circumspect in their treatment of Austrians, so for just this once, I will be, too.



No comments: