Fraser Nelson Fraser Nelson

The crash from an Austrian perspective

It’s not all politics at Westminster. There’s a pretty good think-tank scene too, with lectures on topics that you’re unlikely to read about in the newspapers. One took place today: the Adam Smith Institute hosted a lecture by Steven G. Horwitz, from St. Lawrence University, entitled “An Austrian perspective on the great recession of 2008-09”. As many CoffeeHousers will know, “Austrian” refers to von Mises, Hayek and the others whose analysis of bubbles and crises certainly seems to fit current events. My colleague Jonathan Jones was there, and took some notes – which I have moulded into a six-point briefing.  It’s not often we do a post based on a think-tank talk – we may do more, if CoffeeHousers find them useful. These are notes, as opposed to direct quotes:

1. The Austrian Business Cycle Theory is necessary but not sufficient to explain the recession. Think of it as a car pile-up.

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