Once again, Paul Krugman deliberately distorts the Austrian Theory of the Business Cycle, this time in a recent blog post. I have answered his latest missive, quoting Murray Rothbard, and linking to articles on the subject from Robert Murphy and David Gordon.
Even when Austrians clearly point out Krugman’s errors in describing the ATBC, he continues to make them. I doubt it is because he has not read the alternative explanations or even because they just are not strong enough to deal with his attacks. No, these are well-detailed and accurate, but as long as Krugman can continue to dismiss the ATBC “straw man” caricature he has created, he does not have to deal with the real arguments or the real implications of Keynesian policies.