richardhutnik said:
The Austrian school argues that every bubble is actually created by government interference with markets, in the sense that the central bank ends up making interest rates too low, and causes malinvestment to happen, which then drives a bubble. |
They don't suggest EVERY bubble is created by that... just the really bad ones that have happened so far.
Afterall, bubbles existed before there was government interfernece within markets.
The difference was they were more frequent but smaller.
Aside from which, the main point of Austrian economics is that it's stupid to attribute any one thing to another thing, because economics is inherently untestable.
It's treated more as a hard science like chemistry or phsycis when the reality is, that the basis of economics is in fact people who are individual agents who all act differently to change.
To study why the economy is acting how it is, one must study the individual.
