Economists discover bubbles (NYTimes, free subscription or bugmenot.com), and ponder what causes them. While the struggling economists make plausible (if obvious) theories as to why bubbles persist, no where in the article are the root causes of bubbles explored (such as expansionist monetary policies).
Of course, the author, Princeton economist Alan Krueger, published studies in the 1990s purporting to show that the minimum wage had no effect on unemployment. So perhaps I’m expecting too much. Doesn’t poor Mr. Krueger know any Austrians he could ask? It might save him and his colleagues some trouble.
