Austrian Economics Meets The New Decade In The New Century

by Mario Rizzo

My survey article, “Austrian Economics: Recent Work” has now been published by The New Palgrave Dictionary of Economics. You can find the site here.

You need either an individual subscribution or access to an institutional subscription to get to the article. However, you can look here for the almost-final version. There is also my blog discussion here.

As I have said many times, the boundaries between Austrian economics and other schools of economics are fluid and not precisely defined. I do not view the policy conclusions of particular Austrian economists, regardless of their status, as having the same defining features as their analytical or theoretical contributions. Policy is part of the art and ethics of economics and not just the science as John Neville Keynes argued in 1890. It is not, and cannot, be the straightforward implications of economic theory.

I am a classical liberal, but that is not equivalent to being an Austrian economist (in my broad sense of the term!). I do not belittle the other roads to classical liberalism. When we talk about Austrian economics we are not talking about liberalism and when we talk about liberalism we are not necessarily talking about Austrian economics.

In The Economics of Time and Ignorance Jerry O’Driscoll and I explored the interrelations between Austrian economics and Post Keynesian economics. This was not meant to be an exclusive, exhaustive or even definitive connection. We wanted to shock Austrians out of the self-satisfied slumber that some were in.

In the years that have passed, there have been other connections with New Institutional Economics, experimental economics (in the hands of the great Vernon Smith), public choice-constitutional economics (in the hands, especially, of James Buchanan and Richard Wagner), and so forth.

I look forward to the new contributions of Austrians of every stripe. Some will be good and some will be poor. This is way of science. Errors all over the place. Gems of insight here and there. The process goes on.

5 thoughts on “Austrian Economics Meets The New Decade In The New Century

  1. Mario:

    Your “final proof” pdf cites “recent work” by Roger Garrison with a 2004 date, but the bibliography is silent as to the reference. Can you give it to us? Thanks, and Merry Christmas!

    Jule Herbert

  2. Thanks for the link to the almost-final version. The New Palgrave Dictionary of Economics does not offer individual subscriptions. 😦 I look forward to the eventual death of the archaic academic publication system.

  3. Jule,

    Roger Garrison, “Overconsumption and Forced Savings in the Mises-Hayek Theory of Business Cycle,” History of Political Economy, vol. 36, no. 2 (Summer), 2004, pp. 323-349.

    This is missing in the online version too. I’ll get in touch with the New Palgrave editors to correct this after the holidays. Thanks for bringing it to my attention.

  4. The reference to Mises 1953 seems to be missing from the near-final draft. I’m now on my second read of this very helpful tour d’horizon!

  5. Mises (1977), mentioned on p. 10 of the almost-final draft, is also missing from the bibliography.

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