Been There Done that: The Political Economy of Déjà Vu

Boettke, Peter J.; Smith, Daniel J.; Snow, Nicholas A.

doi:10.2139/ssrn.1764273

Cited by 7 publications

(4 citation statements)

References 17 publications

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“…I am not encouraging a methodological transformation to match that of neoclassical or New Keynesian economics; nor am I suggesting the flaws in mainstream economic beliefs and methods ought not be critiqued (Boettke et al 2011). All I am suggesting is that, since beliefs and meanings of individuals are supreme to those working in the tradition of methodological individualism, aggregates can play a role in the thoughts of economic agents without being a theoretical primary.…”

Section: Discussionmentioning

confidence: 99%

Aggregates and Methodological Individualism: A Relational Approach

Salter

2013

New Perspect. Polit. Econ.

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Methodological individualism, coupled with radical subjectivity, leads naturally to skepticism regarding the objective theoretical value of economic aggregates. I restate the role of aggregates in the methodological individualist paradigm, focusing on the Austrian tradition, in a way consistent with Hodgson’s (2007) critique and emphasize belief and meaning as the relevant channel through which these aggregates operate. Viewing aggregates this way leads to a relational approach which is consistent with formulations made by scholars working within in the methodological individualist paradigm and answers Hodgson’s call for recognition of the importance of interactive relations between individuals.

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Section: Discussionmentioning

confidence: 99%

Aggregates and Methodological Individualism: A Relational Approach

Salter

2013

New Perspect. Polit. Econ.

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“…On the other hand, though, the emphasis is placed on the mistakes committed by Federal Reserve System (expansive monetary policy and artificial reduction of the interest rates), subjecting economic policy to short-term political needs, the creation of a defective institutional structure on the American property market as well as the falling moral standards of the participants of economic life (see e.g. Barro 2009;Becker, Myerson, Scholes 2009;Bernanke 2010;Boettke, Smith and Snow 2011;Cochrane 2011;Colander 2011;Kates 2011;Krugman 2009;Romer 2009;Skidelsky 2009;V. Smith 2010;Stiglitz 2012).…”

Section: Prefacementioning

confidence: 99%

Ethics in Economic Thought. Selected Issues and Various Perspectives

Dzionek‐Kozłowska¹,

Matera²

2015

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“…Further, as during the 1930s, the debate is also being played out in newspapers and magazines, as well as in vigorous political dialogue between conservative and liberal politicians on both sides of the Atlantic. Perhaps nothing illustrates more how the current debate mirrors that of the 1930s than the comparison of the writings in the pages of the major newspapers (see Boettke et al, 2010).…”

Section: Back To the Futurementioning

confidence: 99%

The Debt-Inflation Cycle and the Global Financial Crisis

Boettke¹,

Coyne²

2011

Global Policy

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Writing over 230 years ago, Adam Smith noted the ‘juggling trick’ whereby governments hide the extent of their public debt through ‘pretend payments’. As the fiscal crises around the world illustrate, this juggling trick has run its course. This article explores the relevance of Smith’s juggling trick in the context of dominant fiscal and monetary policies. It is argued that government spending intended to maintain stability, avoid deflation and stimulate the economy leads to significant increases in the public debt. This public debt is sustainable for a period of time and can be serviced through ‘pretend payments’ such as subsequent borrowing or the printing of money. However, at some point borrowing is no longer a feasible option as the state’s creditworthiness erodes. The only recourse is the monetarization of the debt which is also unsustainable due to the threat of hyperinflation. Policy Implications The fear of deflation on the part of policy makers has led to an inflationary bias which neglects or underestimates the costs of inflation. The debt–inflation theory of economic crises must be considered as a viable alternative to the standard debt–deflation theory of economic crises. In order to curtail the tendency of using the tools of monetary and fiscal policy to concentrate benefits and disperse costs, policy institutions must effectively tie the rulers’ hands. After centuries of only fleeting success at curtailing the deficit, debt and debasement cycle of public policy, we may have to consider seriously the possibility that the only way successfully to constrain the state is to eliminate from its purview the task of monetary policy.

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Been There Done that: The Political Economy of Déjà Vu

Cited by 7 publications

References 17 publications

Aggregates and Methodological Individualism: A Relational Approach

Aggregates and Methodological Individualism: A Relational Approach

Ethics in Economic Thought. Selected Issues and Various Perspectives

The Debt-Inflation Cycle and the Global Financial Crisis

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