Economist Marc Faber, author of one of the more interesting books of the last year combining economics and investment ideas (Tomorrow’s Gold) provides his outlook for the coming year. I would describe Faber as Austrian-influenced but not Austrian. He mentions the Austrian theory of the business cycle in his book but gets it wrong. He is nonetheless always fascinating. Certainly this passage he quotes from Schumpeter is similar to the Mises-Hayek theory:
Schumpeter writes: ‘Our analysis leads us to believe that recovery is sound only if it does come from itself. For any revival which is merely due to artificial stimulus leaves part of the work of depression undone and adds, to an undigested remnant of maladjustments, new maladjustments of its own’ (emphasis added).
