Jul 022014

Great piece by Noah Smith on Austrian Faith, impermeable to any contrary evidence and unashamedly clinging to its priors, like 9/11 truthers or – he might have added – Efficient Market theorists:

The years 2011 and 2012 were to Austrians like sunrise is to a vampire. It was simply amazing to sit there and watch Austrians writhe and contort under the pure, burning light of extant reality. Massive torrents of Fed “money-printing” failed to budge prices; this fact directly cracked the central foundations of Austrian thought.

Will they ever learn? What evidence do they require that would be enough to change their mind?

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  One Response to “Austrian Truthers”

  1. Mr. Fuggetta, inflation takes time. Take construction in Brazil: it started booming in 2006-07, but only in 2010 did the labor, cement and steel prices catched up.
    I’m not an Austrian econo, but could it be that someone said they spot a black swan in Australia, an yet it may take a long time till a boat brings one to Europe and the white swan fallacy is proved wrong?
    Would like to hear your critics to my thought.

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