Error, Equilibrium, and Equilibration in Austrian Price Theory

Volume 17, No. 2 (Summer 2014)

ABSTRACT: Theorists of the Austrian school have long maintained that every realized price is market-clearing, in sharp contrast to the adherents of the neoclassical mainstream, who view realized prices as constituting a state of disequilibrium with a mismatch between demand and supply. The heart of these theoretical differences lies in the equilibrium constructs used by the members of the two schools of thought in their analysis of price formation.

Jean–Baptiste Say: Revolutionary, Entrepreneur, Economist, by Evert Schoorl

Volume 17, No.1 (Spring 2014)

The present volume is a full-length biography of Jean-Baptiste Say, and presents a detailed account of the life and intellectual development of the founder of the French Liberal School. The author studies three important periods in Say’s life—his youth, his activity as an entrepreneur, and the later period of recognition of his work—which are coincident with the French Revolution, the Industrial Revolution, and the professionalization of economics respectively.

IHS and the Rebirth of Austrian Economics: Some Reflections on 1974–1976

Volume 17, No.1 (Spring 2014)

Starting in 1974, the Institute for Humane Studies (IHS), based at that time in Menlo Park, California, began an ambitious plan to resurrect the then near to dead Austrian school of thought in economics. The first three steps were conferences at South Royalton, Windsor County, Vermont in June 1974, run by Ed Dolan; Hartford, Connecticut in June 1975, run by Dominick T. Armentano; and Windsor Castle, UK in early September 1976, run by Arthur Shenfield and myself (but see below for University of Delaware, June 1976).

John Blundell

John Blundell is the former director general and Ralph Harris Fellow at the Institute of Economic Affairs (1993–2009)

The Economic Consequences of Loan Maturity Mismatching in the Unhampered Economy

Volume 17, No.1 (Spring 2014)

ABSTRACT: Some economists of the Austrian School contend that business cycles are created when banks use the proceeds of short-term time deposits to create longer-term loans. These authors claim that while loan maturity mismatching of this kind does not create fiduciary media, it nevertheless artificially lowers the market rate of interest and causes forced saving and malinvestment.

Rothbard’s Time Market and the Demand for Present Goods

Volume 17, No.1 (Spring 2014)

ABSTRACT: This paper defends the Rothbardian theory which states that the proportion of consumption spending relative to investment spending is systematically related to the interest rate through time preference in society, contrary to Hülsmann (2008). After clarifying that a time market transaction is based on two exchanges over time, it illuminates the necessary implications when analyzing the demand for and supply of present goods.
Patrick Newman
Patrick Newman

Patrick is and assistant teaching professor of economics at the University of Tampa and Murray N.

Not Enough Bricks: Monetary Misperceptions and the UK Housing Boom

Volume 17, No.1 (Spring 2014)

ABSTRACT: This article analyzes the housing boom witnessed in the UK economy from 1994–2007 in light of the Austrian theory of the business cycle (ABC). Ludwig von Mises’s parable of the “bricks” is utilized to provide empirical grounding for the theory, and the television series “Property Ladder” is used to illustrate the key aspects of the Austrian narrative. In particular attention is drawn to the role of marginal borrowers, regeneration projects, and forced savings.

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