Showing posts with label economic theory. Show all posts
Showing posts with label economic theory. Show all posts

Sunday, January 31, 2010

Austrian School of Economics, a Simple Description

We don't often hear about the Austrian School. More often, the voices of Keynesianism and Monetarism are heard. In today's world of the great recession, it is Keynesian theory that is in charge at the Fed, The Treasury and the President's Council of Economic Advisors. To observe Keynesian theory, we can look to current government policy. Monetarists are the people we hear being critical of Keynesian economic theory or existing policy. There are no voices for Austrian economic theory that are taken seriously. They are viewed as anti-establishment, independent, wrong and non-conforming. I would like to try to document some of what I have learned about the beliefs, and criticisms, of Austrian economics. Despite it’s avoidance of mainstream popularity, there is a well organized school of thought and a small number of practitioners who make a number of points that strike me as important. I see no benefit for allowing their ideas to be ostracized from my understanding of economics.