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Ep. 67 Walter Block and William Barnett on Problems With the Hayekian Triangle

In a 2006 journal article, “On Hayekian Triangles,” Walter Block and William Barnett lists 14 separate objection to the popular device used (in various forms) by Hayek, Rothbard, and Roger Garrison to illustrate how artificially low interest rates lead to an unsustainable boom. Block concludes that the Hayekian triangle can be salvaged, while Barnett thinks it should be abandoned altogether.
Mentioned in the Episode and Other Links of Interest:

The audio production for this episode was provided by Podsworth Media.

About the author, Robert

Christian and economist, Chief Economist at infineo, and Senior Fellow with the Mises Institute.


  1. […] is the standard audio, and I’m now experimenting with releasing select episodes on my YouTube […]

  2. J Scheppers on 10/13/2019 at 3:36 PM

    Could the means of lowering future consumption with lower interest rate be based on new knowledge of estimated lower future value of production. Dr. Murphy, you frequently discuss bubbles due to market manipulation. So the time when the bubble is realized the future consumption would need to be corrected.

    Shifting the timeframe out can make sense when time preferences change and allow more/longer term investment, but the reconciling future production predictions with real production value can validate lower future value.

  3. Lysander on 10/30/2019 at 4:15 PM

    These have to be the most autistic criticisms of the Garrison model I’ve ever heard. The only thing of which Block and Barnett convinced me is that their paper deserved to be ignored.

  4. Greg on 04/02/2020 at 6:53 AM

    I never thought someone would be able to talk faster than Walter Block.

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