The current global financial crisis, described in an incomplete manner as the "subprime crisis," has shown, however, that neoclassical theories are not only descriptively false, but also completely incapable of predicting events. In contrast, the Austrian School's theories, as I will show, not only maintain their realistic approach but also have an important predictive power.
Juan Ramón Rallo Julián
Juan Ramón Rallo is director of the Spanish libertarian think tank Instituto Juan de Mariana and author of several books such as Los errores de la vieja Economía. He teaches in Madrid, at Online Center for Higher Studies Manuel Ayau and at the Master degree in Austrian Economics of the Universidad Rey Juan Carlos. See his website.
