Mises Wire

Help Us Publish These Three New Books

Please consider helping us publish these three new books: The World at War, Full Reserve Banking vs. Real Bills Doctrine, and Austrian Business Cycle Theory: an Introduction. Everyone giving $500 or more will appear as a Patron in each of these books. To become a Patron, contact Kristy Holmes at kristy@mises.org or DONATE ONLINE.

The World at War

by Ralph Raico 
edited by Edward Fuller

To understand war, you also have to understand economics. Ralph Raico’s lecture “The World at War” is a masterpiece. Recorded in 1983, it remains perhaps the best introduction to the classical-liberal interpretation of the two world wars of the twentieth century. Raico touched on many of the topics he discussed in this lecture in his other writings, but he never wove them all together as concisely as he does here. Raico’s interpretation and insights into the causes of perpetual war are much needed today in light of the war-hungry, interventionist politicians that keep the economy on a warfare footing for their own political gain.

Raico was tutored by Ludwig von Mises, Friedrich Hayek, and Murray Rothbard. All were economists and mentors of sorts, giving Raico his unique understanding of what causes war. Raico was the embodiment of Mises’s master historian, whose interpretation of the past is rooted in sound economic theory.

Full Reserve Banking vs. Real Bills Doctrine

by Philipp Bagus

The monetary theory of the Austrian School is based on Mises’s pioneering work of 1912, The Theory of Money and Credit. A recent attack on Mises’s work comes from Juan Ramón Rallo in his Una crítica a la teoría monetaria de Mises (A critique of Mises’s monetary theory), in which he points out errors in Mises’s theory of money. Rallo’s critique introduces his own particular views on monetary theory, which are constructed on Keynes’s “liquidity theory,” fractional reserve banking, and the old Real Bills doctrine.

Bagus’s Full Reserve Banking vs. Real Bills Doctrine defends Austrian monetary theory and full reserve banking against the Real Bills doctrine. It shows that Mises’s supposed errors are not errors at all. At the same time, Bagus undertakes a detailed critique of Rallo’s theory of money, exposing and showing the author’s errors. Bagus attacks the confused liquidity theory of the mainstream economists and calls for a return to full reserve banking.

Austrian Business Cycle Theory: An Introduction

by Paul Cwik

The idea for this book came from a lecture on the causes and consequences of the 2007–09 recession given by an economist from the Federal Reserve branch in Charlotte. During his talk and the subsequent question-and-answer period, which took place at the University of Mount Olive some years ago, it became obvious that the Fed economist had no idea what caused the recession. He had only justifications for the actions the Fed had taken to “fix” the recession. How can you fix something if you can’t explain what broke it? As an Austrian economist, Professor Cwik understands that you can’t fix the macroeconomics (the house) without understanding the framework of microeconomics (the foundation).

Today’s Federal Reserve and government economists are only interested in the big picture because they have never been taught how the economy actually works. In this primer on the Austrian business cycle theory for laymen, Cwik sets out to bring this knowledge to all, because only when you understand the smaller parts of how the economy works can you begin to understand how the larger system works.

Austrian Business Cycle Theory: An Introduction is an excellent companion book to Per Bylund’s How to Think about the Economy.

Everyone giving $500 or more will appear as a Patron in each of these books. To become a Patron, contact Kristy Holmes at kristy@mises.org or donate online here.

Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
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