Haberler asserted business cycles internationalize across national economies
Evidence
Links between the Mises Circle and Geneva deepened when Haberler was appointed in May 1934, on Hayek’s recommendation, to write the follow-up volume to Ohlin on theories of business cycles and the Depression. As we saw in Chapter 1, Haberler used the model of the spaceless world to build his analysis, equating tariffs, distances, and the actions of organized labor as comparable obstacles to the optimal distribution of the world’s resources. Even if he was unsuccessful in proving it scientifically, he saw it as a matter of fact that business cycles could be internationalized. “For a hundred years or more,” he wrote, “the economic connections between most countries in the world, industrialized countries as well as agricultural and raw-material producing countries, have become so intimate and international trade so important for the various national economic systems that a closer connection between the ups and downs of the business cycle in different countries is to be expected.” The “bacillus of boom or depression,” he wrote, travels freely “from country to country.” — Quinn Slobodian, Globalists, 244
Categorization
- XREF: Connects to earlier claim about the ‘spaceless world’ model and Haberler’s analysis from Chapter 1, and to modern debates on global supply-chain synchronization of business cycles. — connects to: Global interdependence weakened national economic control and Keynesian policy — Anthony Giddens, The Consequences of Modernity, 188
Broader Connections
- Global interdependence weakened national economic control and Keynesian policy
#complicates(0.75) — Anthony Giddens, The Consequences of Modernity, 188