Saturday, December 13, 2008

Talk about cognitive dissonance

My latest post on the Blog at Mises.org:








Talk about cognitive dissonance

Jim Fedako


Edward Harrison is suffering from an acute attack of cognitive dissonance: he is holding "two contradictory ideas simultaneously."

On one hand he is a self-proclaimed longtime "devotee of the Austrian School," believing the Austrian school provides a useful "lens through which to view the credit bubble and crash." Yet, on the other hand, Harrison also believes "[i]t is more the work of John Maynard Keynes and his followers that is likely to offer useful prescriptions."

Harrison notes his "economic viewpoint is founded on the Austrian economics." But that belief was challenged when "the Lehman bankruptcy changed things significantly."

The title of the article implies he is still an Austrian economist, an Austrian who believes in Keynes. You can almost feel the dissonance slowly scratching the chalkboard of his internal harmony.

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