History of the Austrian School of Economics

Caplan's claim that the value-scale approach is inadequate for explaining these effects is simply an incorrect interpretation of Professor Rothbard's theoretical framework.

Currently, the Mises Institute is not officially accredited. However, those who desire to do so can take a final exam and have the results posted online. In this way, economics majors can receive extra credit from professors friendly to the Mises Institute, and finance professionals can curry favor with their bosses if they are fans of the Austrian School.

We can date the second Austrian revival almost precisely to the fall of 2008. From that point on, the use of online Austrian resources on Mises.org abruptly doubled from one year earlier, as investors, media commentators, and the public at large frantically sought answers from all quarters while witnessing one iconic financial institution after another topple into bankruptcy.

"What comes out from reading Mises's policy writings is that if you had asked him a fiscal, or monetary, or regulatory-policy question, he would not have said, and did not simply say, 'laissez-faire' — abolish the central bank, deregulate the economy, and eliminate taxes."

The problems involved will become discernible as soon as the wartime attitude in the United States toward financial and trade matters is replaced by a more realistic mentality.

Over two decades before the Spanish Jesuit de Mariana, George Buchanan arrived, for the first time, at a truly individualist theory of natural rights and sovereignty — and therefore a justification for individual acts of tyrannicide.

"An excessive quantity of money," he opined, "should be avoided."

Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous.

"Since credit expansion is made possible by state action, the business cycle — so far from being a natural consequence of the free market and a heavy debit against it — is ultimately traceable to government…"

As Böhm-Bawerk declared, Salmasius's views on usury were the high-water mark of interest theory, to remain so for over 100 years.