Blogging at Division of Labour, Professor Larry White here encapsulates the exchange between Austrian Roger Garrison and anti-Austrian Brad DeLong.
DeLong is one of those statists who won’t take Austrian analysis seriously, smugly dismissing it but never really explaining why government-sponsored credit inflation doesn’t lead to unsustainable investments. I think the real reason why the anti-Austrians reject it is because the implication of the Austrian view that the federal government should not have the power to manipulate interest rates, is anathema to lovers of big government.
