The trouble is, cheap central bank credit also led to the Great Depression and the 1970's stagflation, yet no one seems to learn the lesson. Perhaps that's why Austrians tend to sound like a broken record. I think the reason no one learns the lesson is that cheap credit is just too tempting for politicians ( and the people that vote for them). It seems like a free lunch - until the malinvestment piles up and the credit pyramid starts to topple.
The three biggest economic issues today are:
1) the stagnation of the American standard living since 1970
2) the massive trade deficit and the hollowing of the American economy
3) the financial crisis
All three of these problems are related to fiat currency, maturity mismatching, and inflationary policies by various banks. That's why I think the Austrians, while not perfect, are much closer to the truth than the other economic schools.
Also, I'd note that Austrians tend to be much more knowledgeable of "mainstream" economics than mainstream economists are of Austrian economics ( see http://gregmankiw.blogspot.com/2006/04/austrian-economics.ht... and http://www.slate.com/id/9593, the latter article by Paul Krugman shows a stunning ignorance of what the Austrians are saying ).
The three biggest economic issues today are: 1) the stagnation of the American standard living since 1970 2) the massive trade deficit and the hollowing of the American economy 3) the financial crisis
All three of these problems are related to fiat currency, maturity mismatching, and inflationary policies by various banks. That's why I think the Austrians, while not perfect, are much closer to the truth than the other economic schools.