Quote:
Originally Posted by u-Bob
First of all the reason the Austrian school doesn't get a lot of attention from the mainstream media and from politicians is because Austrian Economists can clearly explain what causes the Boom and Bust cycle: Government intervention in the economy (and more specifically central banks artificially adjusting the interest rate). This totally opposes the Keynesian view that can be easily used by politicians as an excuses for endless borrowing of funds they use to buy peoples' votes.
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I appreciate your response, but I merely explained why they are shunned.
And I wouldn't put too much stock in an explanation that has no practical application. If they could accurately model, predict and offer adjustments to smooth out boom and busts, they would be taken more seriously.
And Government borrowing, which is extended out the yield curve is subject to pricing (interest rate) by the market, not the FED.
Whether politicians borrow and spend more than is prudent is a political issue.
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