Quarterly Journal of Austrian Economics

Volume 4, No. 3 (Fall 2001)

Garrison has a vivid sense for the necessity of adequate pedagogy to communicate Austrian ideas about the working of the economy, and he is very conscious of the power of symbols. His book is a great pedagogical effort aimed at replacing the dominant graphical representation of main macroeconomic relationships-the ominous Keynesian Cross-with a new representation, more genuine to the Austrian viewpoint, which stresses the time element in the structure of production. This focus on pedagogical problems has been an old theme in Garrison's work and now finds a consummation in Time and Money. At the book's center stage is an original three-quadrant diagram that is used (a) to illustrate how a market economy works and grows,(b) to illustrate the causes and nature of business cycles, and (c) to discuss and criticize the Keynesian and monetarist paradigms.