Morgan Reynolds, most recently the chief economist for the Department of Labor, talks to the Austrian Economics Newsletter about his experience, the mistakes of the Bush administration, the business cycle, the status of labor unions in America, his intellectual formation in the Austrian tradition, and his predictions for the future.
Bryan Caplan, in his widely circulated article, "Why I Am Not an Austrian Economist," seemingly has questioned the Austrian contention that choice implies preference. If it can be shown that we choose based on indifference and not preference, the Austrians be shown to be wrong. But can this be shown?
In tough times, people cling to the words of politicians and the statements of TV's talking heads—the two sources least likely to offer a broad perspective that yields answers. Jeffrey Tucker recommends five books for a clear a historical perspective, a theoretical explanation, a forecast for the future, and an agenda for change.
Joseph Salerno highlights Sennholz's contributions to the rebirth of interest in Austrian monetary and business cycle theory and the continuing importance of his works today. He was one of a handful of academic economists to stand fast against the postwar tidal waves of Keynesian macroeconomics and Friedmanite monetarism that swept over American academia in the 1950's and 1960's and threatened to completely submerge sound monetary economics.
Rothbard makes sense of these complex events in American banking history--power struggles, recessions, foreign relations--wielding the principles of monetary theory and Austrian business cycle theory, which he explains very well, on the run. Joseph Stromberg reviews A History of Money and Banking in the United States.
Critics of Austrian theory maintain that there is no justification for the notion that businessmen should fall prey again and again to an artificial lowering of interest rates. Businessmen are likely to learn from experience, the critics argue, and not fall into the trap produced by an artificial lowering of interest rates. Frank Shostak responds.
It is possible for mainstream equilibrium economics to yield correct conclusions about the market system. But this is not a reliable approach, writes D.W. MacKenzie. The mathematical models of mainstream economics divert our attention from the processes and institutions that enable free and prosperous societies to exist and persist.
From admissions through prelims to dissertation, Art Carden recounts his own experience and mistakes, so far, on his way to obtaining an economics PhD. He offers advice for anyone interested in doing so while pursuing an Austrian-style research program.
If there is anything to be said for the difficult times in which we live, it is that they are a reminder that our mission is far from complete. The forces of destructionism are always waiting for an opportunity to rob us of the blessings of civilization. Mises believed that the best way to defeat them was to say what is true. Against the idea of liberty, he said, the fiercest sword of the despot is finally powerless.
The Nobel Committee has selected Vernon Smith for its economics prize. Smith was strongly influenced by Ludwig von Mises' treatise, Human Action, and for that Austrians can be grateful. Furthermore, Smith's research has demonstrated time and again that the Austrians are correct regarding human action in the marketplace and the mainstreamers are flat out wrong.
