Steve Horwitz Gives the Best Austrian Response I've Seen on Cantillon Effects


Some people have called me a "born-again Keynesian." Others have said I've "sold out to the dark side."

Uh-uh. What I really am is someone who found out that the "kindergarten Keynesianism" he was spoon-fed by various "pop-Austrian" authors was as inaccurate as the "kindergarten Hayekianism" he found amongst various scribes on the left. (And I discovered that when I had to teach Keynes, and, as an honest teacher, felt I had to really get his ideas as he saw them before I could properly teach them.)

So what I "really" am is a guy who now is working his ass off to grasp this whole debate, including the perspective of the hundreds of economists besides Keynes and Hayek who offered thoughts on the nature of the business cycle.


  1. Well Gene I must say that for some over at FA, being an honest thinker IS selling out to the darkside.

    As you remarked I've never been a Krugman fan. His arrant partisanship puts me off. I like blog trash talk games, but in articles it erodes trust. And I saw Mankiw and Landsburg nail him a few times. But when I arrived at Murphy's I ofetn emerged as a defender of PK, just as a result of trying to be honest. And the more I read him the more I see 1) yes he's a rabid partisan but 2) he makes cogent arguemtns well and 3) his arguments have little resemblance to what the Krugmaniacs portray.

    Working through all the debt stuff and the OLG models etc I was continaully struck by the thought that little things PK said showed he had already worked this all out.

    In short, I believe you!

    PS Where do you teach?

    1. Anonymous10:15 AM

      Is Murphy intellectually dishonest, or are you only referring to the commenters at his blog? And, is it all of them, or do you have specific people in mind?

    2. Purchase College

  2. Others have said I've "sold out to the dark side."

    I'm pretty sure I just said you "turned" to the Dark Side. I don't think you have made any money.

    1. Yeah but he's won my respect. That's better than money!

    2. Thanks, Ken.

      Could you send along a Benjamin when you get a chance?

    3. Gene, he might send you a Borden, which would work more to your advantage since the exchange rate would be in your favor. Bernanke FTW!

    4. Gene,
      The Benjamin is wrapped and waiting (with a Borden for good measure). Please send along a Jackson for shipping, and it'll be right there.

    5. Tito is on his way.

  3. You can have my Borden when you pry it out of my cold, dead hands.


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