Sunday, September 25, 2011
Vulgar Austrians and Aggregates
Often in blog discussion threads, one sees amateur Austrians popping up and saying things like, "Oh, your theory relies on aggregates, and those have no causal power!" or "No real economic actor ever acts based on aggregates!" or something of the sort. (I doubt you'd see Steve Horwitz or Roger Garrison or George Selgin saying anything like this.) Have they ever stopped to consider the fact that "credit expansion" is itself an aggregate concept, and their dictum has just shot down the Austrian theory of the business cycle along with their target?