'Misguided monetary messages': The Austrian case, 1931 - 34
This paper deals with the apparent contradiction between the monetarist explanation of the Great Depression (as the result of a great monetary contraction) and the Austrian economists' diagnosis, which puts the blame on the inflationist policies pursued by the monetary authorities. Although tempting, the solution to this puzzle does not lie in the Austrians' misperception of the monetary facts but in their specific theory of deflation. Thereby they distinguished between 'automatic deflation' (as an endogenous response of the market system) and 'deflationary policies' (as exogenous disturbances). Thus, they were able to identify inflationist policies amidst an automatically shrinking money supply.
Volume (Year): 12 (2005)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REJH20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REJH20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hayek, F. A., 1995. "Contra Keynes and Cambridge," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226320656 edited by Caldwell, Bruce.
- Friedman, Milton, 1972. "Comments on the Critics," Journal of Political Economy, University of Chicago Press, vol. 80(5), pages 906-50, Sept.-Oct.
When requesting a correction, please mention this item's handle: RePEc:taf:eujhet:v:12:y:2005:i:1:p:25-45. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.