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The Austrian School looks at Boom and Bust

More from Frederick Hayek

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Central banks, yes? Interest rate distortions, no

Real prices are the most important thing for guiding an economy and making it maximally productive and sustainable.

Distorting prices - and that includes distorting interest rates - creates confusion in the system.

There's inherently nothing wrong with allocating social resources, but bailing out business losers - in this case large banks and their bondholders that have behaved recklessly - is the worse mistake of all.