Amazing Article by Rising Star in AE Community.

His name is Guillermo Sanchez, lives in Argentina, and wrote this top notch article.

Just a quick TLDR version. Sraffa the economist challenged the whole Austrian idea that the central banks are at fault for business cycles because they set interest rates too low. His argument was what do you want of the poor, unfairly accused central banks? There are millions of interest rates every second, one for each commodity. Which one should the banks choose, pray tell? Whichever one they choose, there are several million votes against it, from all those commodities whose futures prices are different. Sounds like a strong case, no? Sraffa for the win, it looks like.

Just when it looks like AE can only hang its head in shame, Guillermo Sanchez comes to the rescue. Our man Sanchez destroyed Sraffa by quoting Mises, who wrote that the problem is not interest rates per se, but printing money.

I’ve written about this topic before [search for “Phi Kappa Sraffa”], but Sanchez does a much better job, both in laying out the problem [which I didn’t totally grasp], and in laying out the solution [which I missed completely].

We can only hope this rising star in the AE community will grace us with more articles in English.