Did some austrian school – economists ,,predict the recent american economic crisis?
Yes, along with several other mainstream economists and many non-economist observers who understood the incentives set up for individuals during the bubble. Paul Krugman even suggested that Greenspan replace the stock market bubble with a real estate bubble in 2002. http://mises.org/story/3530 Peter Schiff’s clips from 2006 and 2007 are some of the most famous instances. Nouriel Roubini (by no means an Austrian) was also on record attempting to call people’s attention to it. Both have attempted to call attention to bubbles created by the fiscal and monetary responses to the crisis. They come from very different perspectives on the issue and endorse very different responses, but they both saw it coming. Both Ludwig von Mises and F.A. Hayek showed that credit expansion distorts the pattern of spending and capital investment in the economic system. This in turn leads to the large scale loss of capital and thereby sets the stage for
