Anhil8tor Wrote:The Austrian School of Economics, for its part, taught that booms brought about by credit expansion must ultimately collaspe. Every boom, they say, comes from extrodinary credit expansion out of proportion to real economic growth.
~Kevin Phillips, Bad Money
I never really heard about the "Austrian" school of economics (wtf give all your gold to nazis while singing is their mottos I tell you) but there is more the "chicago school" and the "Keynesians"
In short :
The Chicago school of economics describes a neoclassical school of thought within the academic community of economists, with a strong focus around the faculty of University of Chicago, some of whom have constructed and popularized its principles.
The school emphasizes non-intervention from government and rejects regulation in laissez-faire free markets as inefficient. It is associated with neoclassical price theory and libertarianism and the rejection of Keynesianism in favor of monetarism until the 1980s, when it turned to rational expectations. The school has impacted the field of finance by the development of the efficient market hypothesis. In terms of methodology the stress is on "positive economics" – that is, empirically based studies using statistics to prove theory.
Approximately 70% of the professors in the economics department have been considered part of the school of thought. The University of Chicago department, widely considered one of the world’s foremost economics departments, has fielded more Nobel Prize winners and John Bates Clark medalists in economics than any other university
--chicago sounds like US economy -> "less regulations the market regulates himself"
// me : what didn't entered into accounting is that massive multinational groups fall entirely out of this kind of "market will regulate things" scope, as free choice is not really an option anymore as the whole chain of builder/supplier/wholesaler/... are in fact lined up in the same group or falls in a few entities who negociates at the end collaborations instead of real fighting -for example see the coca-cola and pepsi analogy, you know that both of them don't really compete
Keynesiamism
Keynesian Theory, is based on the ideas of twentieth-century British economist John Maynard Keynes. The state, according to Keynesian economics, can stimulate economic growth and improve stability in the private sector - through, for example, interest rates, taxation and public projects.
// me : I give you in short Keynes thought that economy should be accompanied by the state. What didn't entered into that accounting is that massvie multinational groups fall entirely out of the reach of single states. Thinking that "europe" and "us" and "canada" and "japan" (say) could ever be in harmony to "tax" or "regulate" a massive company is just science-fiction (I mean just hope for them to build a base on mars it's sexier).
