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« Bruce Caldwell talk at Ohio University on F. A. Hayek: Life and Legacy (March 2017) | Main | Hayek's Intellectual Portrait »


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A superb overview of Yeager's monetary contributions, Steve. Congrats.

Concerning waiting regarded as a factor of production: I've tried using it, but I find that it only delays things.

"while each individual can attempt to adjust his money holdings in the face of an excess demand, it was impossible for everyone to succeed in doing so without either a change in the price level, to make the existing nominal money supply grow in real terms to satisfy the demand for real balances, or a change in the nominal money supply that provided more purchasing power at the existing price level."

But people don't have to depend on a central bank to issue more money when it is needed. Issuing new money can be as simple as writing "IOU $1" on a piece of paper. Each of those new dollars is backed by a dollar's worth of the issuer's assets, so money's value will be unaffected by the change in its quantity.

I would like to see a book written on the compatibility between ABCT and MET and how one complements the other in a coherent way, incorporating both into a *complete story of business cycles.

Yeager's insights about the *rational* actions of individuals during monetary disequilibrium and how it does not equate to macroeconomic coordination which was very "Austrian" of him to say in his book "The Fluttering Veil" could be very useful for such a purpose.

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