The Austrian School

Ludwig von Mises Institute

Austrian School


The Hayek-Friedman-Keynes synthesis
Rolf Englund

Milton Friedman


Financial Crisis

Rolf Englund IntCom internetional

Den österrikiska skolan

Arithmetic for Austrians
By Frances Coppola - April 22, 2018

Full text

Top of page

Though most Austrians on the Internet spend their time flogging gold, hyperventilating about inflation and calling various people communists,
the original "Austrian school" thinkers -- Ludwig von Mises and Friedrich Hayek -- had some other ideas as well.
And some of these might be useful for thinking about China.
Noah Smith, Bloomberg 5 August 2015

But at least Austrianism embraces the possibility that businesses might make big, systematic mistakes.
That possibility is essentially ruled out by most modern mainstream models, which use "rational expectations" as their jumping-off point.

It also requires that productive capital come in multiple forms, while mainstream macro usually assumes that all forms of capital are interchangeable.

Full text

Top of page



Americans for Prosperity, a Koch brothers group that has already spent millions on ads fighting health reform
These groups, all financed with secret and unlimited money, feed on chaos and would like nothing better than to claim credit for pushing Washington into another crisis.
Winning an ideological victory is far more important to them than the severe economic effects of a shutdown or, worse, a default, which could shatter the credit markets.
New York Times, September 17, 2013

Full text

The big divide is between those – the Austrians
– who hold that the mistakes are made by governments while the solution is to let the distorted financial edifice collapse
and those – the post-Keynesians
– who hold that a modern economy is inherently unstable, while letting it collapse would take us back to the 1930s.
I am decidedly in the latter camp.
Martin Wolf, Financial Times, January 3, 2012

This is a glorious moment to be an economist
Now we call for trillion dollar stimulus plans on the basis of little more than citing John Maynard Keynes
Benn Steil, Financial Times, February 5 2009

A recession is a normal part of the business cycle.
Congress can't repeal them, and central banks can only fight them, but not prevent them entirely. Clearly, though, they can mitigate the immediate problem
(although the Austrian school of economics, otherwise known as the take-your-medicine-now school,
contends that any such actions simply postpone the Day of Reckoning).
John Mauldin, February 2, 2008

Come and meet the world's leading Austrian economist
Jesús Huerta de Soto, who is delivering the annual Hayek Lecture at the LSE
Daniel Hannan October 22nd, 2010

For eighty years, there has been a dispute between those who believe that stimulating demand is the best way to ward off recessions, and those who believe that demand is a consequence, rather than a cause, of economic growth. In 1932, Keynes and Hayek clashed on this issue in the Times letters page (see here), anticipating the arguments which opposed groups of economists and business leaders were to set out in letters to the Sunday Times and the FT earlier this year.

Full text

Top of page

Dagens nationalekonomiska synsätt på den ekonomiska politiken tycks inte ha några kraftfulla recept för hur en politik för fler jobb skall bedrivas.
Ett alternativ till den dagsaktuella konjunktursynen är den så kallade "österrikiska skolan".
Danne Nordling 29/12 2006

People don't seem to grasp that we've had a historically long (since 1982),
broad (every asset class in the world) and
steep (e.g., the DJIA from under 1,000 to over 13,000, interest rates from 15+% to 5%)
economic and financial boom.
It's gone on so long that everyone pretty much feels that prosperity and profit are just the way the world works.
Doug Casey, July 2007

Money Supply and Recessions
relies heavily on the work of Austrian economist Frank Shostak
Michael Shedlock 9/1 2007

Follow the Money
part of an email exchange between
Graham Makohoniuk and Charles Zentay on the subject of
money, inflation and deflation
March 22, 2007

Början på sidan - Top of page