Krugman and the Austrians

["John Tyler" <j_tyler@xxxxxxxxxxx>]

The article by Krugman on the Austrians was very interesting.
Unfortunately, he reminds me of Zoltan Karpathy in My Fair Lady.

When I recently stated that the profession has not dealt with the
problem posed by Boehm-Bawerk in the first pages of his Capital and
Intererst, I had no intention of plugging the Austrians.  Rather,
Boehm-Bawerk failed miserably to solve the very problem he so forcefully
stated, and we have been plagued by the concepts of time preference and
capital deepening ever since.

It seems that the only valid theory of interest in the literature is
that of Oskar Lange, and it is just barely in the literature.  This is
one of those seminal articles that few read and no one cites (Review of
Economic Studies, 1936).  And of course, Lange was Friedman's most
unfavorite economist.

John Tyler

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