caa a22 4500 445360070 CHVBK 20180317142912.0 cr unu---uuuuu 170323e20110901xx s 000 0 eng 10.1007/s11138-010-0131-3 doi (NATIONALLICENCE)springer-10.1007/s11138-010-0131-3 Kuehn Daniel The Urban Institute, Center on Labor, Human Services, and Population, 2100 M St. NW, 20037, Washington DC, USA aut A critique of Powell, Woods, and Murphy on the 1920-1921 depression [Elektronische Daten] [Daniel Kuehn] A series of recent reviews of the depression of 1920-1921 by Austrian School and libertarian economists have argued that the downturn demonstrates the poverty of Keynesian policy recommendations. However, these writers misrepresent important characteristics of the 1920-1921 downturn, understating the actions of the Federal Reserve and overestimating the relevance of the Harding administration's fiscal policy. They also engage a caricatured version of Keynesian theory and policy, which ignores Keynes's views on the efficacy of nominal wage reductions and the preconditions for monetary and fiscal intervention. This paper argues that the government's response to the 1920-1921 depression was consistent with Keynesian recommendations. It offers suggestions for when Austrian School and Keynesian economics share common ground and argues that the two schools come into conflict primarily in downturns where nominal interest rates are low and demand is depressed. Neither of these conditions held true in the 1920-1921 depression. Springer Science+Business Media, LLC, 2010 Macroeconomics nationallicence Economic history nationallicence Keynesianism nationallicence Austrian School nationallicence Monetary policy nationallicence Fiscal policy nationallicence The Review of Austrian Economics Springer US; http://www.springer-ny.com 24/3(2011-09-01), 273-291 0889-3047 24:3<273 2011 24 11138 https://doi.org/10.1007/s11138-010-0131-3 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11138-010-0131-3 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Kuehn Daniel The Urban Institute, Center on Labor, Human Services, and Population, 2100 M St. NW, 20037, Washington DC, USA aut NATIONALLICENCE 773 0- The Review of Austrian Economics Springer US; http://www.springer-ny.com 24/3(2011-09-01), 273-291 0889-3047 24:3<273 2011 24 11138 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer