Böhm-Bawerk’s policies resulted in social despair

Listen to this article


Sir, Thomas Mayer praises the reactionary Austrian finance minister Eugen Böhm-Bawerk who insisted on the virtues of the gold standard and balanced budgets in pre-1914 Austria (“Carney is wrong about how to solve Europe’s problems” , January 30). The resulting immiseration and social despair in Austria of this pre-Keynesian rejection of counter-cyclical public investment helped shape the thinking of a young Austrian who denounced such economics as he used populist xenophobic politics to rise to power in Germany after the first world war. The UK is lucky to have a governor of the Bank of England who does not worship at such shrines.

Denis Macshane

London SW1, UK

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.