Review of Austrian Economics, Volumes 1-10

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Comment on Tullock's "Why Austrians Are Wrong About Depressions"

The Review of Austrian Economics

Tags Booms and BustsBusiness Cycles

07/20/2005Joseph T. Salerno

With regard to Tullock's "major objection" to the theory, his argument (pp. 3-10) is likewise marred by an apparent unfamiliarity with advanced expositions of the theory. I shall not attempt here to give a point-by-point critique of the author's main argument that, during a typical Austrian business cycle, "there would be only minor transitional unemployment [and] measured GNP would be higher as a result" (p. 74). It is enough to point out that the author's conclusion rests on basic misconceptions about Austrian capital theory and structure-of-production analysis.

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Contact Joseph T. Salerno

Joseph Salerno is academic vice president of the Mises Institute, professor emeritus of economics at Pace University, and editor of the Quarterly Journal of Austrian Economics.

 

References

  and reply by Gordon Tullock, Review of Austrian Economics, 1989, 3, pp. 147-158, "Why Austrians Are Wrong about Depressions, Review of Austrian Economics, 2, pp. 73-78.

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