Thursday, July 15, 2004


The most recent Independent Review includes two articles about macro-economic policy that can keep one awake all night.  Imagine that.
Mark Thornton, in "Who Predicted the Bubble?  Who Predicted the Crash"  looks for pre-2000 economic commentary and finds that it was mainly the Austrians, who worried about easy credit and boom-bust consequences who got it right.  Thornton notes the irony that it is the Austrians who most aver the forecasting game.
"Did Greenspan Deserve Support for Another Term?" by Joseph T. Salerno argues that The Maestro has been wrong all along -- and disingenuous enough to successfully cover his tracks most of the time -- enough to keep getting re appointed.
Salerno's story is worse than any FRB nightmare that a Milton Friedman could ever have had.  And Friedman famously wrote in a recent WSJ op-ed that the Fed was now finally getting it right.
Proof that Milton is not an Austrian.  Not that he ever claimed to be one -- but one could hope.