Producer Charlie Deist tries to cram a semester of economics into one hour with Professor J. Bradford Delong He continues to look at the Austrian Business Cycle Theory, (see part 1), which holds central banks responsible for creating booms and busts by “pumping” cheap credit into the economy and subsequently “slamming on the breaks” when inflation results. Brad DeLong is a former deputy assistant secretary of the U.S. Treasury, and a professor of economics at the University of California at Berkeley, where he is chair of the political economy major. He was also an early blogger, and is one of the most respected voices in the “neoclassical synthesis”—the hybrid of classical, Keynesian, and monetarist macroeconomics taught at universities throughout the world. DeLong has criticized Austrians for putting the blame for business cycles entirely on government. However, he too was concerned by Alan Greenspan’s excessive easing, starting all the way back in 2004, and during the lead-up to the housing bust.
Tune in to find out why DeLong considers himself a student of both Milton Friedman and John Maynard Keynes, and learn what it means to be a liberal in both the modern and classical senses.
- Bradford-DeLong.com — DeLong’s semi-daily web journal.
- @Delong on Twitter
- ABCs of Austrian Business Cycle Theory with Robert Wenzel, Part 1
- Note to Self: Getting in Touch with My Inner Austrian: Toy Stochastic Processes Edition, November 26, 2017 — DeLong’s attempt to build a mathematical model for the Austrian theory.
- Getting in Touch with My Inner Austrian: A Still-Unwritten Paper, by Brad DeLong, April 03, 2008
- Manias, Panics and Crashes: A History of Financial Crises, by Charles Kindleberger, December 2000
- Ben Bernanke versus Milton Friedman: The Federal Reserve’s Emergence as the U.S. Economy’s Central Planner, by Jeffrey Rogers Hummel, The Independent Review, Spring 2011
- Getting in Touch with My Inner Austrian: A Still-Unwritten Paper, by Brad DeLong
- Neel Kashkari, Pres. of the Minneapolis Fed: “My Take on Inflation”
- THINKING ABOUT THE LIQUIDITY TRAP, Paul Krugman, December 1999