tag:blogger.com,1999:blog-6245381193993153721.post8180591207321112058..comments2024-03-17T00:23:24.896-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: John Hicks on Hayek’s Business Cycle TheoryLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6245381193993153721.post-53907271719323182032014-07-19T15:54:57.816-07:002014-07-19T15:54:57.816-07:00Yes i thought just the same,Noah Smith doesn´t see...Yes i thought just the same,Noah Smith doesn´t seem to know much about Austrian theory,and you definitly know more about them than any of us.Actually i was just to write a comment that directed him to your your blog,but i saw someone allready done that. But i don´t think it´s likely Bob Murphy engage in a debate with you again.It didn´t work out so well for him last time,i will remember :) !! Janhttps://www.blogger.com/profile/13321416654318469280noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-42350124672187568352014-07-19T13:04:03.577-07:002014-07-19T13:04:03.577-07:00Jan,
Yes, I have read that debate, but it is rath...Jan,<br /><br />Yes, I have read that debate, but it is rather weak and Noah Smith doesn't seem to have a good grasp on Austrian theory.<br /><br />Someone should direct him to my critiques!Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-56667198645214802032014-07-19T13:00:39.170-07:002014-07-19T13:00:39.170-07:00It doesn't, but the *tendency* to equilibrium ...It doesn't, but the *tendency* to equilibrium underlying the theory does require some degree of price flexibility, though Austrians think there are lags, Cantillon effects and some price rigidities here and there. <br /><br />But your comment suggests you don't really understand the issues or the points above.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-68166936358522734142014-07-19T12:14:39.121-07:002014-07-19T12:14:39.121-07:00LK .Noah Smith and Bob Murphy seem to be engaged i...LK .Noah Smith and Bob Murphy seem to be engaged in an argument:<br />http://noahpinionblog.blogspot.se/2014/07/austrianism-wrong-inconceivable.htmlJanhttps://www.blogger.com/profile/13321416654318469280noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-17130030135303993932014-07-19T11:51:55.037-07:002014-07-19T11:51:55.037-07:00Why does ABCT require prices to be perfectly flexi...Why does ABCT require prices to be perfectly flexible? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-57032853778314117892014-07-19T09:33:47.943-07:002014-07-19T09:33:47.943-07:00No, it isn't. The meaning of the original stat...No, it isn't. The meaning of the original statement should be quite clear -- to people who actually have some knowledge of Austrian theory and my own writings here.<br /><br />The notion that I meant to say or imply that Austrians really think that all real world prices are perfectly flexible is a stupid misunderstanding.<br />Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-11318744164554296322014-07-19T09:01:59.389-07:002014-07-19T09:01:59.389-07:00So one can rewrite your statement "Under the ...So one can rewrite your statement "Under the simplistic model of Austrian and neoclassical theory, if prices and wages really were perfectly flexible ..."<br /><br />as<br /><br />"Under the simplistic Austrian model that doesn't assume prices and wages are perfectly flexible if prices and wages really were perfectly flexible ...."<br /><br />There is a name for this kind of technique: Its called "just making stuff up"<br />Rob Rawlingsnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-32061437892318587222014-07-19T07:45:12.715-07:002014-07-19T07:45:12.715-07:00"Are you claiming here that Austrians think t...<i>"Are you claiming here that Austrians think that prices are perfectly flexible ?"</i><br /><br />No, I am not claiming they think prices in the real world are perfectly flexible.<br /><br />I am speaking of what they think would happen IF prices and wages were perfectly flexible: that is, rapid market clearing.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-68786319765269572542014-07-19T06:58:15.421-07:002014-07-19T06:58:15.421-07:00LK,
You say "Under the simplistic model of A...LK,<br /><br />You say "Under the simplistic model of Austrian and neoclassical theory, if prices and wages really were perfectly flexible ..."<br /><br /><br />Are you claiming here that Austrians think that prices are perfectly flexible ? If so, can you provide a quote from a leading Austrian that backs up your claim?<br /><br />Its pretty obvious that ABCT is based on assumptions of a certain degree of price stickiness (and monetary disequilibrium) - the theory doesn't work without it.Rob Rawlingsnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-63612713445194447682014-07-19T05:56:08.097-07:002014-07-19T05:56:08.097-07:00"I'm curious what an Austrian response to..."I'm curious what an Austrian response to this would be"<br /><br />Denial.Philippenoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-3765030649475024762014-07-18T18:31:17.435-07:002014-07-18T18:31:17.435-07:00Great post. I'm curious what an Austrian respo...Great post. I'm curious what an Austrian response to this would be. It seems to be quite damaging to their story.Jonathanhttps://www.blogger.com/profile/16139919591280155501noreply@blogger.com