Monday, August 24, 2015

Help me understand counter cyclical measures

I listened to the talk about Mises Brazil here: http://bit.ly/1hVTckq I heard him say the Brazilian president attempted to counteract the 2008 recession with basic Keynsian stimulus tools, inflation, low interest rates, and spending. It seems to me at this is basically an entire country using a big credit card, and ignoring the future consequences. Basically my question for more educated Austrian economics philosophers, is to what extent if any should the market be manipulated in response to drastic swings? For instance, when the fuel prices in the U.S. skyrocketed the government sold some of the national reserves. Is this correct behavior?

link: http://bit.ly/1EQDknY