Ep. 67 Walter Block and William Barnett on Problems With the Hayekian Triangle
https://www.bobmurphyshow.com/wp-content/uploads/2019/10/Garrison-on-Triangle.gif ()In a 2006 journal article, “On Hayekian Triangles,” Walter Block and William Barnett lists 14 separate objection to the popular device used (in various forms) by Hayek, Rothbard, and Roger Garrison to illustrate how artificially low interest rates lead to an unsustainable boom. Block concludes that the Hayekian triangle can be salvaged, while Barnett thinks it should be abandoned altogether. . . . . . Mentioned in the Episode and Other Links of Interest: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1880543 (Barnett and Block’s (2006) paper) critiquing Hayekian triangles. University home pages for http://business.loyno.edu/bio/william-barnett-ii (William Barnett) and http://business.loyno.edu/bio/walter-block (Walter Block). Roger Garrison’s http://webhome.auburn.edu/~garriro/ppsus.htm (amazing PPT shows), contrasting sustainable and unsustainable growth in Austrian tradition. Also Garrison’s book http://webhome.auburn.edu/~garriro/tam.htm (Time and Money). https://mises.org/library/study-guide-man-economy-and-state (Bob’s (free) study guide) to Murray Rothbard’s Man, Economy, and State. In particular, the diagrams on page 97 give a numerical example of how a drop in time preference changes the production structure, in the Austrian tradition. Barnett later emailed Bob to clarify that during the interview he had been thinking of Mark Skousen’s book http://mskousen.com/economics-books/the-structure-of-production/ (The Structure of Production), and specifically figures 5.14 and 5.15. How http://bobmurphyshow.com/contribute (you can contribute) to the Bob Murphy Show. The audio production for this episode was provided by https://www.podsworth.com/ (Podsworth Media).