Friday, November 28, 2008

Friedrich Hayek on inflation

Friedrich Hayek, the great Austrian economist, on Meet the Press in 1975. The circumstances at the time was primarily inflation and rising unemployment. Not exactly the situation we're in now, but the attempt to gin up the economy with infusing massive amounts government money could bring back the inflation beast. Hayek's most important point is that inflation draws labor into jobs that can only be sustained by further inflation.

Hat tip to Division of Labor

Queue up the audio here.

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