If I had a twitter account, I might have just tweeted this, but since I don’t, I will write a quick post instead. In the Economix blog at the New York Times website, Bruce Bartlett writes a post today with the somewhat misleading title “What Rule Should the Fed Follow?” about how Austrian Business Cycle Theory has come to dominate the thinking of right-wing economics, displacing the Monetarism of Milton Friedman. As some commenters point out, that is a bit of an exaggeration on Bartlett’s part. At the upper levels of right-wing economic policy-making, there are still very few, if any, Austrians to be found. However, mainstream types like John Taylor and Alan Meltzer have managed to make the necessary adjustments to the zeitgeist.
All in all, a worthwhile and enlightening discussion, but I couldn’t help wondering . . . whatever happened to Hawtrey and Cassel?