0 of 0 people found the following review helpful:
The Austrian Theory of the Trade Cycle, 2008-12-14
Concise and easy to read. Explains how we got to the current economic crisis and raises questions in my mind about the effectiveness of measures currently being taken to revive the economy.
1 of 1 people found the following review helpful:
Good intro, 2008-06-04
I'm pretty ignorant concerning economics, so much of this went over my head, but I think it might be about the simplest and most introductory view of the Austrian view you're going to get.
1 of 1 people found the following review helpful:
Very Good Review of Austrian economics, 2008-04-10
Short and concise essay describing the real economic process and why business cycle occurs, contrary to unsatisfactory explanation by Keynesian economics. Recommended to read if you are interested in economics.
5 of 6 people found the following review helpful:
Powerful and Remarkably Timely, 2008-01-13
This is a very insightful collection of essays from many of the leading "Austrian School" trade economists. They run from essays in the 30s aimed at countering the wave of post-depression social planning to essays in the 70s arguing against Keynesian economics. The key economic insight across the essays is the temportal nature of the Austrian view of business cycles. An artificially low interest rate (mandated by banks or the central government) increases investment in primary goods. Before the capacity can be deployed, there's an increase in wages, which causes inflation in end products. The only end is a return to sounder money (the gold standard) and a cut back of the credit. The reader could easily extrapolate the market conditions described in the book to the current situation. As for the solution - it hasn't been tried, and unlike the symptoms of the problem (which have had empirical support), nobody knows if a switch to the gold standard will really solve the problem. Either way, the economics described are thought provoking, and worth a look. It is also timely given Ron Paul's support of these policies.
This recommendation does come with a few caveats... Know what you're getting into. This isn't a "Cover all" for Austrian theory. It's a series of essays, none of which can get into tremendous detail. That said, it's very deep. Even for the initiated, much of the book requires multiple reading to critically understand what's going on. Lastly, like most Austrian works, it is heavier on analysis than empirical data.
In all, it is worth the read to help the reader understand an important view of business cycles.
46 of 49 people found the following review helpful:
Austrian macro-economics without any criticisms, 2001-10-28
A lovely succinct account from four towers in a tradition of economics that is widely represented in the financial markets. Roger Garrison - himself a leading light in modern times - leads off with a brief overview. The nice thing is that Garrison manages to get it all across without resorting to waffle - another Austrian tradition. In fact, in my view, Garrison is the star of this review since his ability to keep it simple is a tremendous asset. Anyone familiar with the dark mutterings of academics in Austrian academic journals will know exactly what I'm talking about.
Aside from Garrison, the pieces by Rothbard and Harberler are the best since they tackle the central issue of Trade Cycle theory - that any system run by central bankers is inherently unstable since their tinkering with interest rates leads directly to the business cycle. Much better to have a competitive banking system without a central bank and a curency tied to gold. That way credit expansions will never be explosive. Of course, what they don't tell you is that their proposals are inherently deflationary and force deficit countries to do all adjustment when they experience balance of payments problems.
Rothbard's piece sets out the mechanics of the Trade Cycle especially well and everyone should be able to understand what he's getting at without too much difficulty. It's no more difficult than the average economics course on an MBA programme. That's hardly difficult, is it?
Readers wishing to understand the micro-economics of the Austrian school should also check out some of the recent publications of one Israel Kirzner.