Should Central Banks Lean Against the Wind?

by Andreas Hoffmann The pre-crisis Jackson Hole Consensus view on how to take asset market developments into account in monetary policy can be summarized as follows: Because it is hard to spot bubbles in asset markets with certainty ex-ante, central bankers should not lean against the wind when there seems to be a boom in … Continue reading Should Central Banks Lean Against the Wind?

The Viennese culture of conversation: Understanding and defending fragile orders

by Stefan Kolev* For a better understanding of the turbulences of our time, studying those earlier politico-economic debates which focused on fragile orders of economy and society can certainly prove insightful. In The Viennese Students of Civilization, Erwin Dekker addresses such an age and interprets the works and impact of economists often labeled as the … Continue reading The Viennese culture of conversation: Understanding and defending fragile orders

Call for Papers: 2017 SDAE Meetings (Deadline: April 1, 2017)

The annual meeting of the Society for the Development of Austrian Economics will be held during the Southern Economics Association meetings in Tampa, FL at the Tampa Marriott Waterside Hotel and Marina, November 17-19, 2017 (Friday to Sunday; more information can be found here: https://www.southerneconomic.org/conference/). Members interested in presenting papers, serving as chairs/discussants, or proposing … Continue reading Call for Papers: 2017 SDAE Meetings (Deadline: April 1, 2017)

Call for Papers: Austrian Monetary Economics Conference

I would like to bring the following to your attention: – Call for Papers – Monetary Policy in the 21st Century: The Renaissance of Austrian Monetary Economics Madrid, November 2nd and 3rd, 2017 Submission deadline: June 30th, 2017 The Faculty of Political Economy in co-operation with the Master Programme in Economics of the Austrian School … Continue reading Call for Papers: Austrian Monetary Economics Conference

Discussion of Israel Kirzner’s Work on Entrepreneurship

Check this out at Liberty Matters. Lead Essay: Peter J. Boettke, "Israel M. Kirzner on Competitive Behavior, Industrial Structure, and the Entrepreneurial Market Process" [Posted: March 1, 2017] Responses and Critiques Mario J. Rizzo, "Kirzner’s Theory of the Market Process" [Posted: March 6, 2017] Peter G. Klein, "Entrepreneurial Discovery: Who Needs It?" [Posted: March 8, … Continue reading Discussion of Israel Kirzner’s Work on Entrepreneurship

Interview with Gerald O’Driscoll

by Mario Rizzo I am happy to post a very interesting interview with my long-time friend and Cato senior fellow, Jerry O'Driscoll. As readers of ThinkMarkets know, Jerry frequently contributes to this blog. This is from the Lara-Murphy Report. The entire report can be accessed immediately below. The interview with O'Driscoll begins at page 24. … Continue reading Interview with Gerald O’Driscoll

Herbert Davenport: The Economics of Enterprise

by Richard M. Ebeling* This year marks the hundredth anniversary of the publication of Herbert J. Davenport’s (1861-1931), The Economics of Enterprise, which appeared in the early months of 1913. Both mainstream economists as well as many “Austrians” seem to have long since forgotten Herbert Davenport. But during his time he was recognized as one … Continue reading Herbert Davenport: The Economics of Enterprise

Clarifications of the Austro-Wicksellian Business Cycle Theory

by Mario Rizzo There has been a lively debate on forecasts of high inflation made by those worried about the Fed’s recent policy of quantitative easing. For details I refer the reader to Daniel Kuehn's excellent blog. The question to which I address myself is solely “What do these predictions have to do with core Austrian … Continue reading Clarifications of the Austro-Wicksellian Business Cycle Theory

A “Kleinian” Version of Austrian Business Cycle Theory

by Gene Callahan The next phase in my (now our, as I've taken on a colleague) project of thinking through Dan Klein's Knowledge and Coordination is to see how his ideas might be used to help describe business cycle theories and demonstrate commonalities they share. Note: the point of the present exercise is simply to try to … Continue reading A “Kleinian” Version of Austrian Business Cycle Theory

Fads as Social Cycles

We don't follow fashion That would be a joke You know we're going to set them set them So everyone can take note take note -- Adam Ant and Marco Pirroni by Gene Callahan* In his book Knowledge and Coordination, Daniel Klein distinguishes between mutual coordination and concatenate coordination. Mutual coordination is coordination which people intend: you … Continue reading Fads as Social Cycles

Austrian Economics: An Empirical and Experimental Science

by Mario Rizzo I have been doing research on the ideas of the first-generation Austrian economists (Menger, Wieser and Boehm-Bawerk) as they relate to contemporary developments in behavioral and experimental economics. I have come upon a number of interesting things. I expect to share some of them here as well as in a soon-forthcoming paper. … Continue reading Austrian Economics: An Empirical and Experimental Science

Notes on a General Theory of the Social Cycle

by Gene Callahan Monday past at our colloquium Andreas Hoffman presented a fascinating paper attempting to depict Austrian Business Cycle Theory as a special case of a more general business cycle theory based upon Hayek's later work on spontaneous orders. Hoffman's general idea (I won't do it justice in this brief summary, so please have a … Continue reading Notes on a General Theory of the Social Cycle

O’Driscoll and Rizzo Got There First

by Gene Callahan I had believed that Tony Carilli and Greg Dempster ("Expectations in Austrian Business Cycle Theory: An Application of the Prisoner's Dilemma," The Review of Austrian Economics, 2001) made a major advance in Austrian Business Cycle Theory by hitting upon the correct solution to the challenge presented by, for instance, Gordon Tullock, who … Continue reading O’Driscoll and Rizzo Got There First

Yes, Paul: It is Hayek versus Keynes

by Mario Rizzo Although by the standards of contemporary economics, I am a historian of economic thought, I am not a historian of economic thought, properly considered. Thus my major interest in F.A. Hayek’s business cycle theory is not from the point of view of a historian. My interest is only incidentally in how Hayek’s contributions … Continue reading Yes, Paul: It is Hayek versus Keynes

Radical Ignorance in the Financial Crisis

by Sandy Ikeda Jeffrey Friedman and Wladimir Kraus have a new book out, Engineering the Financial Crisis, (Univ. Penn Press) that grew out of research that first appeared in Critical Review back in 2009 on the "Causes of the Crisis."  Friedman’s lead article in that issue did an excellent job of providing a detailed but readable description … Continue reading Radical Ignorance in the Financial Crisis

Chicago and Vienna

by Jerry O’Driscoll In the last two days, two prominent economists have asked me essentially the same question: what is the difference between Chicago and Austrian economics? It is interesting that both asked, particularly since one has a Ph.D from Chicago. The second economist asked me specifically if Armen Alchian wasn’t really an Austrian. I’ll respond … Continue reading Chicago and Vienna

Another step down the road to serfdom

by Roger Koppl Peter Orszag, former director of the Office of Management and Budget, has written an article for The New Republic entitled “Too Much of a Good Thing: Why we need less democracy.”  “To solve the serious problems facing our country,” he says, “we need to minimize the harm from legislative inertia by relying … Continue reading Another step down the road to serfdom

Thomas Mayer: “I am an Austrian in Economics”

by Andreas Hoffmann In today's publication Thomas Mayer writes that he is "an Austrian in economics." Mayer is the chief economist of Deutsche Bank Group and head of Deutsche Bank Research. Mayer argues that Austrian theory fits recent events well.  He suggests that "Failure of the liquidationists to overcome the Great Depression of the early … Continue reading Thomas Mayer: “I am an Austrian in Economics”

Resource Allocation Distortions in the Great Recession: Empirical Evidence

by Mario Rizzo The recent annual report of the Bank for International Settlements (BIS) has focused attention on the sectoral imbalances in the previous boom that resulted in the Great Recession. This is a refreshing change from the excessively aggregative analyses of the Keynesian-stimulus crowd.   It is well known that John Maynard Keynes himself was … Continue reading Resource Allocation Distortions in the Great Recession: Empirical Evidence

Of Interest to All Market Process Economists

by Gene Callahan Dan Klein responds, on the meaning of economic coordination, mostly to Israel Kirzner, and secondarily to several others, including me. Here is Klein's abstract: The Fall 2010 issue of the Journal of Private Enterprise featured a complicated set of papers. The lead article was a long paper by Jason Briggeman and me, … Continue reading Of Interest to All Market Process Economists

The Role of the Perverse Elasticity of Credit Money

by Andreas Hoffmann I want to bring a recent comment by Sornette and von der Backe to the attention of the reader (in Nature 471, p. 166, May 2011). Sornette and von der Backe remind us to pay more attention to disequilibria caused by the fractional reserve banking system to explain the emergence of crises. … Continue reading The Role of the Perverse Elasticity of Credit Money

Happy Birthday, Carl Menger

by Mario Rizzo  Today is the birthday of Carl Menger, born February 23, 1840. Menger was, of course, the founder of the Austrian School of Economics. His Principles of Economics, a great achievement for its time, is still well worth reading. It conveys like no other book at the time (and unlike most basic texts … Continue reading Happy Birthday, Carl Menger