Thursday, December 13, 2007
”The Austrian View”…sounds familiar??
Same thing all over again:- ''Another explanation [for the Great Depression] comes from the Austrian School of economics...the key cause of the Depression was the expansion of the money supply in the 1920s that lead to an unsustainable credit driven boom....in the Austrian view it was this inflation of the money supply that led to an unsustainable boom in both asset prices (stocks and bonds) and in capital goods. By the time the Fed belatedly tightened in 1928, it was far too late and, in the Austrian view, a depression was inevitable.''