Tag Archives: Austrian school

States as coordination problems

Economist David Friedman’s theory about the size and shape of nations leads him to postulate that the increased importance of labour income–a result of the Industrial Revolution: one of the ironies of history is that greatly increased propensity to produce capital increases both the scale (through increased demand) and then the average income (through increased relative scarcity) […]

Funny summaries

Came across this comment which made me laugh lots: Actually there is a cogent neo-Austrian case for fiscal stimulus, not that any self-described Austrian actually espouses it. As a result of the central bank keeping interest rates artificially low, the private sector, being made up of idiots, indulges in massive malinvestment in useless capital of excessive […]

Bubble trouble: not an easy money problem

The notion that “easy money” created asset booms is levelled (famously by Austrian school economists such as von Mises and Hayek) against the 1920s boom and by a range of commentators about the Great Moderation boom. In both cases, the Fed (dominated by Benjamin Strong as New York Fed Governor up to 1928 and by Alan Greenspan as Fed Chair 1987-2006) is held to be to […]

The mystery of the human and the trade-offs of control

What is the biggest difference in decision-making between buying equipment and hiring a person?  The characteristics of the equipment are much easier to discern. Sure, there can be hidden flaws in machinery and buildings. You may have to take the equipment for a test run, you may need some expert to have a look at […]

Going for gold: perils of entering the goldzone

Who would want the global monetary system to be at the mercy of the Bank of China?  Not conservative, free market types in the United States and elsewhere, one guesses. Actually, it turns out lots of them do; all the people who support some sort of return to the gold standard, who think that the […]

Response to Dr Horwitz’s thoughts

Dr Horwitz’s thoughtful and generous response to my original post is useful in clarifying what a serious Austrian school economist thinks and correcting some of my misapprehensions. It seems to have been a useful exercise, to provide reactions to Austrian commentary from someone much more familiar with mainstream economics. Even better, I now have something I […]

Some Thoughts on Lorenzo on Austrian Economics (guest post by Steven Horwitz)

This is a guest post by Steven Horwitz which was originally posted at Critical Thinking Applied but which Dr Horwitz has kindly agreed to be also posted here. Dr. Horwitz is the Charles A. Dana Professor of Economics at St. Lawrence University in Canton, NY. He is the author of two books, Microfoundations and Macroeconomics: An Austrian Perspective (Routledge, 2000) and Monetary […]

About Austrian economics

I find Steve Horwitz, along with George Selgin (prominent advocate of free banking and supporter of a productivity norm [pdf] for monetary policy), the most accessible of contemporary Austrian school economists as they are both clear writers who seek to engage with those who are not of their school and are refreshingly free of the nastiness […]

Put not your faith in labels: naming in the dismal science – guest post by Lorenzo

[SL: A frequent criticism of economics is that the ‘dismal science’ is now too big for its boots: it makes claims in rhetorical language that would do credit to a theologian or philosopher, and often appears to step far outside its remit. This criticism is particularly acute when some large rhetorical claim turns out to […]