“From 1928, Hayek and Morgenstern had been the co-directors of the [Austrian Trade Cycle Institute], with its tiny staff. […] Instead of resorting to public works as a means of countering depression, the Austroliberals promoted Auflockerung – namely, price flexibility and the removal of market restrictions in the spheres of both production and employment. Elsewhere in the capital, public speeches by Mises and Hayek promoted the same economic philosophy.”

Emphasis mine, Robert Leonard, 2010, Von Neuman, Morgenstern and the Creation of Game Theory, p. 148.

Edit: Over on Facebook Klaas Hoherz and Justin Ptak alerted me to the fact that it’s “Auflockerung”, and not “autoflockerung” like a previous version of this post mentioned. Sorry about that.

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