Saturday, June 06, 2009
The depression you never heard of
From mises.org, Thomas E. Woods Jr. delivers what looks like an after-dinner speech address about Warren Harding, the depression that never was of 1920–21, and why governments make things worse during economic downturns. The short answer is that price signals matter, and interest rates are the price of money, so it should be little surprise that messing around with the price of money causes monetary disasters. In other words, this blog's editorial stance that interest rates need to be left well alone is justifiable, at least according to some economists.Be warned, the video is 50min long, but it is worth watching, at least until he starts to wax lyrical about the beauties of Austrian economic theory in the last five minutes. (link)EDIT: Thanks to Dr. Woods himself in the comments, we now have the video embedded, so you don't even need to leave this page. You've no excuses now!