Austrian Economics Advances in the QJAE
New scholarly work is appearing regularly in the Quarterly Journal of Austrian Economics. Here are some articles from the latest issue.
Capital and Interest Theory
Displaying 1 - 10 of 775
Cheap Credit Doesn’t Create Economic Growth—It Makes Us Poorer
Net present value (NPV) is a popular decision-making criteria used by firms to make key, crucial choices about how to allocate resources across an economy, but this can be misleading especially when interest rates are manipulated via inflation.
Economic Theory Explains Economic Data, Not the Other Way Around
Most economists subscribe to a belief in “positive economics,” which means that economic theory flows from economic data. Thus, all theory can be tested for falsification at any time. Austrian economics, however, begins with economic theory, which is used to interpret the real world.
Longer, Higher for Longer
More statist orientation of people, combined with already-bloated government budgets and dangerous levels of national debt, and strong underlying demographic erosions in the form of declining birthrates would suggest a shift in trends toward higher interest rates into the future.
The Next Economic Downturn Will Be Here Soon Enough
The US economy is hooked on easy money and artificially low interest rates. Huge credit expansions are not “stimulating” the economy; they are destroying it.
The Next Economic Downturn Will Be Here Soon Enough
The US economy is hooked on easy money and artificially low interest rates. Huge credit expansions are not “stimulating” the economy; they are destroying it.
Most Economists Still Don’t Understand How Inflation Is Destroying our Economy
Mainstream economists are at a loss to explain why the current regime of inflation and central bank interventions have been so economically devastating. Understanding Cantillon effects is vital to making sense of the current madness.
Do Markets Ever Reach Equilibrium?
Equilibrium is an imaginary construct that should be used only for analytical purposes. Unfortunately, mainstream economists have claimed it should represent a desired state of economic affairs.
The Hidden Costs of “Buy Now, Pay Later” Culture
The modern debt culture—underwritten by the Federal Reserve’s expansionary policies—is not only harms capital development, but it also encourages short time preferences, which diminishes the structure of production.
Does a Fall in Unemployment Lead to Stronger Economic Growth?
Ever since the Great Depression, most economists have claimed that the key to increasing economic growth is to lower unemployment. However, increasing the savings rate and building a capital structure are the keys to growth—and lower unemployment.
