Talk:Austrian business cycle theory/Archives/2009/December

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Krugman

Krugman argues that spending falls during a recession, something that is supposedly not explained by Austrian economics. However, wouldn't this make sense as Austrians agree with Say's Law? If production falls, then demand would as well. Doesn't this make perfect sense then? Phattonez (talk) 07:00, 23 November 2009 (UTC)

ABCT ~~does~~ doesn't explain why total production would fall. Instead they only have a story about why investment demand would fall. If they hold to Say's law, this implies that consumption would rise when investment demand falls. Hence the contradiction. LK (talk) 14:42, 24 November 2009 (UTC)

Hi, LK. Context seems to suggest that your "does" above should be a "doesn't" ?? BigK HeX (talk) 19:45, 9 December 2009 (UTC)

Oops, sorry, my mistake. Fixed.