Austrian Monetary Theory: Comment on Pascal Salin’s Paper

The paper in this issue by Professor Salin comparing the Austrian and Chicago schools in the field of monetary theory is very stimulating. One would expect nothing less from a leading monetary theorist sympathetic to both schools. Austrians can learn a lot from engaging with non-Austrian approaches to monetary theory and economics generally. After all, one can learn from the refutation of false doctrines as well as from true theories expounded outside one’s own school of thought. In the case of the Chicago school, there is the opportunity to do both: although there are many similarities between Chicago and Austrian monetary theory, the differences are crucial and, as is argued in this reply, generally suggest the superiority of the Austrian position.