Mises libertarian economics doesn't work.

There is a good reason why modern economists don't believe in the Austrian school of economics. It can't be verified by data. Here is a brief description.

Here is the Krugman article. The key quote:

Recessions are not necessary consequences of booms. They can and should be fought, not with austerity but with liberality—with policies that encourage people to spend more, not less. Nor is this merely an academic argument: The hangover theory can do real harm. Liquidationist views played an important role in the spread of the Great Depression—with Austrian theorists such as Friedrich von Hayek and Joseph Schumpeter strenuously arguing, in the very depths of that depression, against any attempt to restore "sham" prosperity by expanding credit and the money supply. And these same views are doing their bit to inhibit recovery in the world's depressed economies at this very moment.

Go read the detailed explanation. Pay special attention to the problem of why the Austrian School cannot explain unemployment and also to what the solution to the Depression has to be (hint: It's government spending, stupid!)