Mainstream economists believe that a market economy is by definition internally unstable. Austrians argue that the instability comes from outside intervention. Thus, Austrians can explain what is happening while others simply describe the events.
While not as effective an economist as Ludwig von Mises or Murray N. Rothbard, Ludwig Lachmann played an important role in the revitalization of Austrian economics after 1974.
Since 1986, Mises University has been the world’s leading academic program advancing Austrian economics. This July, we celebrated the 40th anniversary of our flagship event with students attending from around the world.
In 1871, Carl Menger gave what still is the best explanation of diminishing marginal utility. What was true in 1871 is true today.
The beauty of Austrian economics is that it springs from real human action and does not depend upon the construction of abstract mathematical models meant to parallel reality.
In 1962, despite professional and institutional obstacles, Man, Economy, and State was finally published. With it, Rothbard greatly advanced the Austrian tradition and firmly positioned himself as Mises’s heir.
With advances in the Austrian theory of the business cycle, Rothbard finally completed the monumental task of deducing the entire corpus of economic theory using the praxeological method.
Murray Rothbard’s project drastically changed in mid-1953. Unable to rely on Mises’s sparse treatment of production theory, Rothbard adopted his old Marshallian approach, focusing on an individual firm that faced fixed prices and restricted investment decisions.
Murray Rothbard’s economic perspective changed significantly in 1949 when he met Ludwig von Mises and read his magnum opus, Human Action.
Murray Rothbard started his career with a foundational training in neoclassical economics.
