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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (72930)	1/5/2000 4:33:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

BGR, >>So, does the Austrian school claim the such imbalances invariably lead to a recession? Any time frames or is it open ended (so any future recession counts!)?<< "My understanding" is that you can avoid the recession if you keep on expanding credit when the excesses try to correct themselves (sound familiar?). However, if you continue down that path in repeated fashion you eventually blow out the monetary system the way many 3rd world countries have. There can be no timetable because the result is dependent on the actions taken and all sorts of economic relationships that noone can measure scientifically. (least of all me) If I had to guess I would say that we have avoided the corrections to excess a minimum of once and perhaps more often than that in this cycle. The symptoms so far are a huge current account deficit, extremely high asset prices in relation to historically mean reverting levels, and low savings. Keep in mind I am not an expert in Austrian economics even though I'm an avid reader. Wayne