domingo, 11 de agosto de 2013

Austrian VS Post Keynesians on ABCT: The Debate

In case that some readers did not notice it, there has been a debate about Austrian Business Cycle Theory (ABCT) between the Spanish Austrian School thinker Dr. Juan Ramón Rallo and the Post Keynesian blogger “Lord Keynes”.

Rallo is specially known in Spanish and Latin (America) world, and he is, in my opinion, one of its greatest Austrian economists. For those English speakers who don’t know him, he is one the bests disciples of Huerta de Soto. However it must be said that, in monetary economics, he is far from his master and the "traditional" Austrian School. Rallo endorses a theory mainly represented by Antal Fekete who founded the so called (by him) "New Austrian School", a supposedly Menger-rooted school about banking maturity mismatch, neo-real bills doctrine, liquidity, Gold Standard, among a lot other things. In other words he is neither a 100% gold-reservist like Rothbard nor a complete free banker like Selgin. Despite I also disagree with him on this, that doesn’t detract one iota of Rallo's greatness. ABCT emerged stronger from the clash of them.

On this blog post are all the links to the debate. Unfortunatelly for English speakers, Rallo's responses are in Spanish. So anyone who can't understand spanish very well can use Google Translate. He also made an excellent refutation of Sraffa's system and value theory.

Finally in a shameless act of self-promotion I will divert you to my personal opinions about the "multiple rates of interest" objections against ABCT (here is the short version, and here is the full discussion) and about "full employment assumption and all that" (here and here).

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