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.

Driving the Market Process: “Alertness” Versus Innovation and “Creative Destruction”

Volume 16, No. 4 (Winter 2013)

ABSTRACT: This paper summarizes and compares the theories of entrepreneurship of Joseph A. Schumpeter and Israel M. Kirzner as presented in their major scholarly contributions to economic analysis. It is argued that Kirzner’s theory of entrepreneurial action as “the driving force of the market” contributes greatly to a fundamental understanding of the market process.

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