Saturday, June 13, 2015

Snarky Mention of Austrian School Economics at Establishment Mag

James Pethokoukis, a fellow at the American Enterprise Institute, writes at The Week:
If  Mitt Romney couldn't beat President Obama in 2012 when the jobless rate was almost 8 percent, how can the next Republican nominee beat Hillary Clinton in 2016 when the unemployment rate could be under 5 percent?...
Now, there are no economic guarantees here. Maybe the Yellen Fed will start reading too much Austrian economics, freak out about inflation, and crank up interest rates so high that it causes a recession.
Or more likely, the Fed won't be concerned enough  about price inflation and it will climb rapidly, so that in time, Pethokoukis comment:
With inflation low, however, the pace of tightening should be gradual.
Will show that he has no understanding of how the economy works.

As I warn in the EPJ Daily Alert, accelerated price inflation is coming, First 3%, then 5% and then perhaps as high as 10%.



  1. Apparently, Mr. Pethokoukis has no familiarity with the concept of economic mis-calculation induced by pricing with fiat funny money.

    I'm shocked.

  2. So if inflation was low why would you need to do anything, gradually or rapidly?