Customer Reviews

A Tiger by the Tail: The Keynesian Legacy of Inflation (Cato paper)

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Hayek uses flawless logic to prove that Keynesian economics, which is touted today as our own modern monetary policy, is inflationary economics. The end result of this application can only be a situation which is worse than the one it was intended to remedy. Hayek proves that individuals acting independently are unable to provide the consistent statistical information necessary on which to base an ordered economy. Hayek then explains how Keynes' pursuit of a perfect monetary policy will never be realized because artificial intervention can only produce inflationism. Hayek's focus throughout the book on the temporary fix versus long-term consequences now has me watching our present government and its monetary decisions in a new light. In 1979, Hayek showed what is happening today with perfect clarity. Every act of intervention brings about a need for more. Hence, his title "A Tiger by the Tail". Once we have grabbed a hold we cannot let go and are inevitabily dependent upon the government to bail us out and keep us afloat. If you read this book, you don't have to believe...just be a good swimmer.