Alternative titles considered for this blog post:
1. Austrians say the darndest things, and
2. Silly Austrians, BPS are for Keynes!
Anyway - Jonathan Catalan seems to think the move from LM2 to LM3 in Figure 1 and from LM1 to LM2 in Figure 2 are the same thing. I'm not sure why he would think such a thing. I mean just look at them! They look really, really different, right? What's the deal Jonathan?