Value and Exchange

When studying praxeology, something as trivial as the recipe for chocolate cake can become a way to better teach us Austrian economics.

When studying praxeology, something as trivial as the recipe for chocolate cake can become a way to better teach us Austrian economics.

Dr. Joe Salerno argues we shouldn't fear falling prices: productivity-driven deflation raises living standards, while “deflation phobia” props up inflation targeting.

Austrian economists differ with the economic mainstream in many ways, but the break on utility theory is especially critical in understanding the split between the two schools of economic thought.

A yacht—like any good exchanged on the free market—represents countless value-maximizing exchanges and represents an industry that employs thousands of people to provide goods and services to others.

A yacht—like any good exchanged on the free market—represents countless value-maximizing exchanges and represents an industry that employs thousands of people to provide goods and services to others.

Price theory is the cornerstone of the foundation of economic calculation.

Praxeology is the science of human action.

Bob responds to flawed arguments about trade deficits.

Six hundred years before Carl Menger wrote his Principles, Thomas Aquinas was writing about the role of subjective valuation in economic exchanges. His work helped lay the groundwork for further advances in economic theory.