NTRO: John Maynard Keynes. F. A. Hayek Round Two. Round 2.0 Same economists. Same beliefs. New microphones. New Mustaches. Let’s go. Let’s go. Let’s go.
KEYNES: Here we are. Peace out. Great Recession. Thanks to ME. As you see. We’re not in a depression. Recovery. Destiny. If you follow my lesson. More Keynes. Here I come. Line up for the procession.
HAYEK: We brought out the shovels and we’re still in a ditch. And still digging. Don’t you think it’s time for a switch from that hair of the dog. Friend the party is over, the long run is here, it’s time to get sober.
KEYNES: Are you kidding? My cure works perfectly fine. Have a look. The recession ended in ’09. I deserve credit. Things would have been worse. All the estimates prove it. I’ll go chapter and verse.
HAYEK: Econometricians, they’re ever too pious. Are they doing real science or confirming their bias? Their Keynesian models are tidy and neat. But that top down approach is a fatal conceit.
KEYNES: We could have done better if we’d only spent more. Too bad that only happens when there’s a world war. You can carp all you want about stats and regression. Do you deny that world war cut short the Depression?