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The author or concept searched is found in the following 3 entries.
| Disputed term/author/ism | Author |
Entry |
Reference |
|---|---|---|---|
| Business Cycle | Economic Theories | Rothbard III 1007 Business cycles//economic theories/Rothbard: The business-cycle analysis set forth here has essentially been that of the "Austrian" School, originated and developed by Ludwig von Mises and some of his students.(1) Full employment/VsMises/VsAustrian school/VsRothbard: A prominent criticism of this theory is that it "assumes the existence of full employment" or that its analysis holds only after "full employment" has been attained. Credit expansion: Before that point, say the critics, credit expansion will beneficently put these factors to work and not generate further malinvestments or cycles. RothbardVsVs: But, in the first place, inflation will put no unemployed factors to work unless their owners, though holding out for a money price higher than their marginal value product, are blindly content to accept the necessarily Iower real price when it is camouflaged as a rise in the "cost of living." And credit expansion generates further cycles whether or not there are unemployed factors. It creates more distortions and malinvestments, delays indefinitely the process of recovery from the previous boom, and makes necessary an eventually far more grueling recovery to adjust to the new malinvestments as well as to the old. Capital goods: If idle capital goods are now set to work, this "idle capacity" is the hangover effect of previous wasteful malinvestments, and hence is really sub-marginal and not worth bringing into production. Putting the capital to work again will only redouble the distortions.(2) 1. Mises first presented the "Austrian theory" in a notable section ofhis Theory of Money and credit, pp. 346-66. For a more developed statement, see his Human Action, New Haven, Conn.: Yale University Press, 1949. Reprinted by the Ludwig von Mises Institute, 1998. pp. 547-83. For F.A. Hayek's important contributions, see especially his Prices and Production, and also his Monetary Theory and the Trade Cycle (London: Jonathan Cape, 1933), and Profits, Interest, and Investment. Other works in the Misesian tradition include Robbins, The Great Depression, and Fritz Machlup, The Stock Market, Credit, and Capital Formation (New York: Macmillan & Co., 1940). 2. See Mises, Human Action, New Haven, Conn.: Yale University Press, 1949. Reprinted by the Ludwig von Mises Institute, 1998. pp. 5 77-78; and Hayek, Prices and Production, pp. 96-99. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
| Marginal Utility | Austrian School | Rothbard IV 18 Marginal Utility/Austrian School/Mises/Rothbard: (An] important achievement of The Theory of Money and Credit(1) was in eradicating some non-individualist anomalies that had crippled the Austrian concept of marginal utility. >Austrian School. For in contradiction to their own basic methodology of concentrating on the real actions of the individual, the Austrians had gone along with the Jevons-Walras versions of marginal utility that had tried to make it a measurable mathematical quantity. Even today, every economics textbook explains marginal utility in terms of “utils,” of units that are supposedly subject to addition, multiplication, and other mathematical operations. If the student should feel that it makes little sense to say “I place a value of 4 utils on that pound of butter,” that student would be absolutely correct. MisesVsAustrian School: Building on the insight of his fellow student at the Böhm-Bawerk seminar, the Czech, Franz Cuhel, Mises devastatingly refuted the idea of marginal utility being in any sense measurable, and showed that marginal utility is a strictly ordinal ranking, in which the individual lists his values by preference ranks (“I prefer A to B, and B to C”), without assuming any mythological unit or quantity of utility. Rothbard IV 20 If it makes no sense to say that an individual can “measure his own utility,” then it makes even less sense to try to compare utilities between people in society. >Marginal utility/Mises. 1. Ludwig von Mises. 1912. The Theory of Money and Credit (Theorie des Geldes und der Umlaufsmittel, Translated by H.E. Batson in 1934; reprinted with “Monetary Reconstruction» (New Haven, Conn.: Yale University Press, 1953). Reprinted by the Foundation for Economic Education, 1971; reprinted with an Introduction by Murray N. Rothbard, Liberty Press Liberty Classics, 1989. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
| Money | Helfferich | Rothbard IV 55 Money/Helfferich/Rothbard: In 1903, the influential monetary economist Karl Helfferich, in his work on Money, laid down a challenge to the Austrian School. HelfferichVsAustrian School: He pointed out correctly that the great Austrians, Menger, Böhm-Bawerk, and their followers, despite their prowess in analyzing the market and the value of goods and services (what we would now call “micro-economics”), had not managed to solve the problem of money. >Microeconomics, >Karl Menger, >Böhm-Bawerk, >Austrian School. Marginal utility: Marginal utility theory had not been extended to the value of money, which had continued, as under the English classical economists, to be kept in a “macro” box strictly separate from utility, value, and relative prices. Even the best monetary analysis, as in Ricardo, the Currency School, and Irving Fisher in the United States, had been developed in terms of “price levels,” “velocities,” and other aggregates completely ungrounded in any micro analysis of the actions of individuals. >Individuals/Austrian School. Economic cycles: The problem was this: for directly consumable goods the utility and therefore the demand for a product can be arrived at clearly. The consumer sees the product, evaluates it, and ranks it on his value scale. These utilities to consumers interact to form a market demand. Market supply is determined by the expected demand, and the two interact to determine market price. Money/Demand for money/Helfferich: But a particular problem is posed by the utility of, and the demand for, money. For money is demanded on the market, and held in one’s cash balance, not for its own sake but solely for present or future purchases of other goods. The distinctive nature of money is that it is not consumed, but only used as a medium of exchange to facilitate exchanges on the market. Money, therefore, is only demanded on the market because it has a pre-existing purchasing-power, or value or price on the market. For all consumer goods and services, therefore, value and demand logically precede and determine price. But the value of money, while determined by demand, also precedes it; in fact, a demand for money presupposes that money already has a value and price. A causal explanation of the value of money seems to founder in unavoidable circular reasoning. Solution/Mises: In 1906, his doctorate out of the way, Mises determined to take up the Helfferich challenge, apply marginal utility theory to money (…). >Money/Mises, >Money supply/Mises, >Economic cycles/Mises, >Inflation/Mises. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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