The Austrian School of Economics in the 21st Century: Evolution and Impact

Description

This book provides an overview of the evolution and theories of the Austrian School of Economics and develops answers to current economic questions and the pressing problems of the 21st century from the Austrian perspective. Readers will learn about the fundamental ideas of the Austrian School, the current state of Austrian economics, and the intellectual figures and institutions that sustain it as a vibrant intellectual movement. International experts on Austrian economics cover topics such as the economic impact of pandemics, trade blocs, federalism and European integration, and the economic development of China. The book also discusses the influence of the Austrian School on modern economic thought and mainstream economics, as well as on policymakers. It will appeal to students and scholars of economics and to anyone interested in social and economic liberalism.   Preface Information about the Institutes Ludwig von Mises Institute—Europe Mises Institute Contents Contributors Abbreviations A Short Introduction to the Theories of the Austrian School 1 Emergence of Fundamental Liberalism in the Economics of the Austrian School After WWI: In the Case of Ludwig Von Mises 1 Origins of Liberal Economics Under the Old Austrian Empire 2 Mises and Schumpeter 3 Mises and the Post-WWI Politics in Vienna 4 Criticism of Socialism and Fundamental Liberalism 5 Historical Significance of the Purification of Liberalism by Mises References 2 Capital and Time—Sources of Innovation in Economic Development. An Austrian Economic Perspective 1 Introduction 2 Time in Economic Processes 3 The Concept of Capital in the Austrian School of Economics 4 Capital Structure and Capital Controversy 5 Technological Progress in the Austrian School of Economics 6 The Nature of the Innovation Process 7 The Schumpeterian Theory of Innovation and the Creation of New Market Order 8 Innovation as a Factor of Change in Economic Systems 9 Conclusion References History and the Present Situation 3 The Present Situation in the USA, Austrian Economics in the Twenty-First Century 1 A Brief History of the Austrian School of Economics 2 Variation Within the Austrian School of Economics 3 What is Right and What is Wrong with Contemporary Austrian Economics 4 Conclusion References 4 The Austrian School in the USA: Institutions and Entrepreneurship 1 Introduction 2 Economic Calculation and Non-comprehensive Planning 2.1 Planning Post-War Politics 2.2 The Failure of Development Engineering 2.3 Job Creation Versus Value Creation 3 Entrepreneurs in Context 3.1 Planning Discovery 3.2 Entrepreneurs as a Catalyst for Development 3.3 Protective Entrepreneurship and Private Governance 4 Conclusion References 5 The Present State of Austrian School of Economics in Europe 1 Introduction 2 How did We Count Austrian Economists in Europe? 3 Main Theoretical Achievements 3.1 Nicolai Foss 3.2 Jesús Huerta de Soto 3.3 Jörg Guido Hülsmann 3.4 Pascal Salin 3.5 New Generation 4 Austrian Economics in the European Academia 5 Conferences 6 Academic Journals 7 Third Sector 7.1 Textbooks and Primers 7.2 Mises and Hayek Institutes 7.3 Austria 7.4 Czechia 7.5 France 7.6 Italy 7.7 Lithuania 7.8 Montenegro 7.9 Poland 7.10 Romania 7.11 Slovakia 7.12 Spain 7.13 Sweden 7.14 United Kingdom References 6 The Present Situation in Asia 1 Introduction: The Reception of Austrian Economics in Japan 2 The Early Life and Work of Katsuichi Yamamoto 3 Katsuichi Yamamoto After the War 4 Conclusion: Toshio Murata and the Modern Austrian School in Japan Appendix: Selected Works of Katsuichi Yamamoto References The Austrian School. Finance in the 21st Century 7 The Political Realities of the Austrian School: Experiences from Parliament, Central Banks and Global Institutions 1 Introduction 2 The Austrian School and Political Economy (Steve Baker) 2.1 The State Doctrine of Interventionism 2.2 Freedom Through Monetary Reform 2.3 Freedom Through Planning Reform 2.4 The Task Ahead 3 The Austrian School and Central Banks (Steve Baker) 3.1 The Austrian School and Central Banks 3.2 The Bank of England and the UK Parliament 3.3 What are Big Players 3.4 The Bank of England Knows it is a Big Player 3.5 Big Players Can Have a Positive Effect 3.6 The Negative Consequences of Central Bank Intervention Cannot be Mitigated 3.7 Who is Right? 3.8 The Austrian School Needs More Than Despair 4 The Austrian School and Global Institutions (Max Rangeley) 5 Mainstream Economics and the Emergence of Cryptocurrencies (Max Rangeley) 6 Conclusion References 8 Monetary Policy After the Coronavirus Crisis 1 Introduction 2 Monetary Policy Before the Global Coronavirus Crisis 3 Harms of Ultralow Interest Rates 4 Central Banks’ Reaction to the Global Coronavirus Crisis 5 Monetary Policy After the Global Coronavirus Crisis 6 Conclusions References 9 The Economic Effects of Pandemics 1 Introduction: Recurrent Cycles of Boom and Recession Versus Isolated Crises Caused by Extraordinary Phenomena 2 The Effects of Pandemics on the Real Productive Structure: The Labor Market, the Process of Capital-Goods Stages, and the Impact of Uncertainty 2.1 The Labor Market 2.2 The Productive Structure and Capital Goods 2.3 Uncertainty and the Demand for Money 3 Pandemics: Systematic Government Bureaucracy and Coercion Versus Spontaneous Social Coordination 3.1 The Theorem of the Impossibility of Socialism and Its Application to the Current Crisis 3.2 Other Collateral Effects of Statism Predicted by the Theory 3.3 Pandemics: Free Society and Market Economy 3.4 The Servility and Obedience of Citizens 4 The Pandemic as a Pretext for an Increasing Lack of Fiscal and Monetary Control by Governments and Central Banks 4.1 Dynamic Efficiency as a Necessary and Sufficient Condition for the Economy to Recover from a Pandemic 4.2 Depletion of the Extremely Lax Monetary Policy in the Years Prior to the Pandemic 4.3 The Reaction of Central Banks to the Unexpected Outbreak of the Pandemic 4.4 Central Banks Have Gone Down a Blind Alley 4.5 The “Pièce De Résistance” of Public Spending 5 Conclusion References The Institutions 10 The Austrian Perspective of Political Integration: An Overview References 11 Hayekian Federalism and European Integration 1 Introduction 2 Hayek's Theory of International Federalism and Its Historical Context 3 The European Integration Process: A Hayekian Perspective 3.1 The Constitutionalisation of Competition Law in Europe 3.2 The Pitfalls of Positive Integration 3.3 Federalism and Monetary Nationalism 4 The Shadow of Monnetist and Spinellian Federalism Over the European Integration Process 4.1 The Importance of 'Negotiating Packages' 4.2 Limits of Negative Integration and Incentives for Supranational Regulation 4.3 European Institutions’ Incentives to Centralise 4.4 Neo-Functionalism and Federalism 5 Conclusion: Hayekian Federalism as the Way Forward for European Integration? References The Future 12 A Passage to Asia: What the Future of International Trade Partnerships Can Learn from the Past 1 Introduction 2 Looking East: Asia–Pacific’s Rising Prominence 3 Looking to the Past: Mises, Röpke, and Heilperin 3.1 Protectionism, then and Now 3.2 Bilateralism, Regionalism, and the International Division of Labor 3.3 The “Hand-To-Mouth” Character of Global Trade 4 Looking to the Future 5 Conclusion References 13 Does Chinese Economic Development Fit the Austrian Perspective? 1 The Austrian Theory of Knowledge, Freedom, and Entrepreneurship 2 Political Fragmentation and Decentralized Decision-Making in Eurasia 3 Mao’s Great Leap Forward 4 Deng’s Reforms and Beyond 5 The Symbiosis of Communist Party Rule and Capitalism Under Challenge 6 Conclusion: What Does the Austrian View Explain? References 14 Will the Antagonism Between the Mainstream Theories and the Theories of the Austrian School of Economics Continue to Exist in the Future or Will More Ideas of the Austrian School Be Incorporated in Mainstream Economics? 1 Introduction 2 Austrian School of Economics 3 Mainstream Schools of Economics 4 The Neoclassical School of Economics 5 The New Keynesian Schools of Economics 6 The Neoclassical-Keynesian Synthesis School of Economics 7 Where the Austrian School Meets the Mainstream 7.1 Tools for Historical Research 7.2 Policies 8 Insurmountable Differences 8.1 Indifference in Action 8.2 Dynamic Economy 8.3 Lack of Constants 8.4 Subjective Rationality 9 Reconsidering the Antagonism 10 Conclusions References Outlines for the Book “The Austrian School of Economics in the 21st Century” Part I. A Short Introduction to the Theories of the Austrian School Part II. History and the Present Situation Part III. The Austrian School. Finance in the Twenty-First Century Part IV. The Institutions Part V. The Future Author Index Subject Index