Austrian Capital Theory, Business Cycle Theory, and Macroeconomics

The crossover rate is the interest rate at which the two NPV [net present value] profiles cross. The wooden bridge has a higher NPV ranking ...

The purpose of this paper is to show how Keynesian economics represents a justification for fractional reserve banking and why this justific...

 The pre-Keynesian analysis of fractional reserve banking can be illustrated with the loan market theory, the theory of multiple deposit cre...

I cannot help regarding the increasing concentration on short-run effects—which in this context amounts to the same thing as a concentration...

Capital-based macroeconomics rejects the Keynes-inspired distinction between macroeconomics and the economics of growth. This unfortunate di...

The founders of the discipline did not reason about competition within an intellectual matrix comparable to that which dominates the mind gr...

This informational characteristic of equilibrium serves to explain why equilibrium does not provide an adequate framework for studying how a...

The problem of entrepreneurship for economists is that the best-developed and best-understood part of economic theory—neoclassical economics...

The implication of these observations is that economic theory is unending, because we are confronted with an open system. The idea we could ...

 In Mises’s theory, the business cycle begins when a central bank exogenously expands the quantity of central bank-issued money and drives t...

[Benjamin] Constant’s discussion of the ancient polis, or city-state, is celebrated. Max Weber took what he called “the brilliant Constant h...

 Liberalism is no religion, no world view, no party of special interests. It is no religion because it demands neither faith nor devotion, b...

Thus in their two volume work Soviet Communism: A New Civilization? Fabian socialists Sidney and Beatrice Webb praised the “Cult of Science...

The expanded scope and the inherent difficulties of the material covered in the “Scientism” essay were partly responsible for the slowdown, ...

In response to socialists who proposed that central planning required only that the planners solve the appropriate set of Walrasian equation...

 N. Scott Arnold’s book does not address the history of real existing socialism and the disappointment of these regimes to deliver on their ...

Mises’s individualist conception of equilibrium stands in stark contrast to Wicksell’s reliance on broad measures of macroeconomic aggregate...

The subject matter was a complete departure from his preparatory studies at the University of Vienna, where the subject of the thesis for hi...

Having thus disposed of the necessity of deflation, how then did, in Hayek’s view, a secondary deflation develop and what would have been an...

Just at the time when Hayek had entered the scene as an economic theorist in Great Britain, the economies of the major industrial countries ...

The distinction between Hayek’s emphasis on relative prices and the preoccupation of the ‘stabilisation theorists’ with the price level is b...

 The current inflationary depression [1974-1975] has revealed starkly to the nation’s economists that their cherished theories—adopted and a...

 Furthermore, as in the case of Fisher and Hawtrey, the current monetarists uphold as an ethical and economic ideal the maintenance of a sta...

Along with the renewed emphasis on business cycles, the late 1960s saw the emergence of the  “monetarist” Chicago School, headed by Milton F...

The nobility of the American aim to help Europe return to the gold standard becomes even more questionable when we realize that Europe never...