What is Austrian Economics?

NYU's Austrian Economics guru Mario Rizzo has this to say. Here is the entry Mario wrote for the New Palgrave.

I met Mario once when I was attending the FEE Austrian seminar, a real scholar and gentleman. It was also at FEE where I met Israel Kirzner for the first time.

Speaking about Austrian Economics, my teacher Richard Wagner would have a new book on the subject due out in early next year entitled, "Mind, Society and Human Action."

Clash of Economic Ideas

For those who are interested in the debate of the 1930s on the potency of different economic policies in fending of economic downturn, which of course is relevant to the current debate on how to react to the current economic crisis, Austrian economist Larry White at U of Missouri St. Louis, is in the process of writing a book on the topic.

Here is one of the chapters. (Scroll down the page and you will see it, Larry is presenting the paper at the NYU market process seminar)

Spontaneous Order

Loyal reader Kempton asked me whether the title of my blog is inspired by F. Hayek. Indeed, but the origin of the concept of such an order goes back much earlier in history.

Guess Norman Barry's "The Tradition of Spontaneous Order" is still the best introductory work on this topic. You may also want to consult Tom Sowell's most excellent "A Conflict of Visions" which touches on similar issues.

Taking Hayek Seriously Blog

Find it here. HT to the Austrian Economists for the pointer.

Nice

On the left is excellent art work by Peter Selgin, the twin brother of George Selgin, another prominent Austrian monetary theorist and advocate of free banking.

Did Hayek and Robbins Deepen the Great Depression?

The answer is NO according to Larry White, one of the prominent Austrian monetary theorists and advocates of the free banking ideal.

Here is what Milton Friedman claimed they did, from Larry's paper:

I think the Austrian business-cycle theory has done the world a great dealof harm. If you go back to the 1930s, which is a key point, here you hadthe Austrians sitting in London, Hayek and Lionel Robbins, and saying you just have to let the bottom drop out of the world. You’ve just got to let it cure itself. You can’t do anything about it. You will only make it worse.… I think by encouraging that kind of do-nothing policy both in Britain and in the United States, they did harm.

What's the real culprit then?

Real Bills Doctrine.


Read Larry's paper here.

Subprime mess: An Austrian Explanation.

Bottom line: Fine-tunning by the Fed is the culprit of the current subprime mess.

Here it is, and hat tip Larry White up at Division of Labor for the pointer.

Addendum:

For those who want to know more about Austrian monetary theory and business cycle theory, visit this website. And more here.

Austrians from Basel?

Greg Ip at WSJ wrote that Bill White who works at the Bank of International Settlements in Basel is a fellow follower of Austrian Economics, more here. I disagree.

If you really want to learn what Austrian macroeconomics is all about, start here.

Dos and Don'ts For Budding Austrian Economists

So you want to be an Austrian Economist? Read Peter Leeson's advice before you do so. I wish somebody gave me such advice while I was in graduate school.