Austrian Economics
The most prominent economist following this school of economic theory were from Austria, hence it was named Austrian economics by it’s opponents at the time. The name stuck, and it’s still called Austrian Economics today despite the fact that far more Austrian school followers live in America today than anywhere else.
| Carl Menger | - Father of Austrian Economics, Principles of Economics (1871) |
| Eugen von Bohm-Bawerk | - Capital and Interest (1880’s) |
| Ludwig von Mises | - Most influential, many works, Human Action: A Treatise on Economics (1949) |
| F.A. Hayek | - won Nobel prize (1974), many works, Monetary Theory and the Trade Cycle (1929) |
All four of the above are members of the first few generations of Austrian economics and all four were born in Austria. From there Austrian economics becomes more and more American, culminating in the rebirth we’ve seen in the U.S. since the 70’s.
- How does Austrian Economics differ from other schools of economics?
Austrian economic theory tends to come to different conclusions than what is today known as ‘mainstream’ economics, which is primarily composed of what is known as Neo-Classical and Keynesian theory.
Most of the differences arise from the disagreement on the proper methodology of economics.
Example: Austrians do not support any form of government intervention in the free-market, this is especially true when it comes to government ’stimulus’ at times of recession or depression because Austrian theory proves that government spending will only lengthen and deepen the economic slowdown.
Austrian economics is not nearly as mathematical as ‘mainstream’ economics, instead Austrians use logic and deductive reasoning to derive natural laws which explain human action and this is called Praxeology. For a great explanation of Praxeology, please check out this short PDF by Murray Rothbard (the most recent ‘great Austrian’)
For a full length explanation, check out “What is Austrian Economics?” by Mises.org
