The Comparative Political Economy of a Crisis
Studies in Austrian Macroeconomics
ISBN: 978-1-78635-274-3, eISBN: 978-1-78635-273-6
Publication date: 28 April 2016
Abstract
During times of economic crises, the public policy response is to abandon basic economic thinking and engage in “emergency economic” policies. We explore how the current financial crisis was in part caused by previous emergency economic measures. We then investigate the theoretical limitations of emergency economic responses. We argue that these responses fail to take into consideration the practical conditions of politics, thereby making them unsuitable to remedy the problems of a crisis. Lastly, we provide a preliminary analysis of the consequences resulting from emergency economic policies initiated in response to the 2008 financial crisis.
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Acknowledgements
Acknowledgments
We thank the participants of the Writh Institute Workshop on Austrian Economics for helpful comments. We also acknowledge and thank the Templeton Foundation for support of the F. A. Hayek Program for Advanced Study in Philosophy, Politics and Economics at the Mercatus Center at George Mason University
Citation
Boettke, P.J. and Palagashvili, L. (2016), "The Comparative Political Economy of a Crisis", Studies in Austrian Macroeconomics (Advances in Austrian Economics, Vol. 20), Emerald Group Publishing Limited, Leeds, pp. 235-263. https://doi.org/10.1108/S1529-213420160000020011
Publisher
:Emerald Group Publishing Limited
Copyright © 2016 Emerald Group Publishing Limited