Wednesday, July 10, 2013

What Hayek Would Do?

How Austrian Economists Would Fix the Crisis and Stop it Happening Again
Robert Miller – Adam Smith Institute, 2013
Mainstream economists did not predict and cannot explain the 'Great Recession'. Their 'solutions' have failed.

Only the long-marginalised 'Austrian' economists saw that a boom built on excess money and credit must end in a bust. Trying to revive the boom is folly: we should cut tax and regulation to help business re-adjust to the new economic reality. The role banks as intermediaries between savers and investors should be reduced to increase both stability and growth. This can be achieved by supplementing the Basel rules with a requirement that banks hold more hard cash.

Read full article at: Adam Smith Institute

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