Paul Craig Roberts raises an interesting point when he writes: “If Mateusz Machaj were correct that ‘there is no difference between mobility of factors of production inside or outside a country,’ there would be no subject matter for international trade theory. All trade would be regional trade.” This is almost correct. As pointed out by Mises in
Two recent discussions about resource prices conveys much good information. This morning I was greeted with a discussion in the blogosphere about oil prices. As Russ Roberts explains, the Hotelling principle, that prices of resources of fixed supply should rise at the market rate of interest, cannot be applied to oil, if for no other reason that
We live in an age where abstract models of the real world are held in high regard. Wall Street firms hire mathematicians and physicists to create sophisticated mathematical models of various assets and markets. Meteorologists employ computer models to predict the path of storms. Marketing firms model the anticipated consumer response to a proposed
Ludwig von Mises is famous, among other things, for contending that a large-scale socialist economy cannot exist. As he put it , “ without calculation, economic activity is impossible.” He said that the absence of real (i.e., market) prices, in a fully socialist economy, would leave its planners without the means to perform the sort of calculation
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.