Another “Austrian” Critique of Market Monetarism: Part 1

Shawn Ritenour provides a critique of Market Monetarism on Mises.org. He charges:Market monetarist theory and policy is unsatisfactory primarily because Market monetarists use a faulty theoretical framework in analyzing economic activity, they misunderstand how expectations enter into economic decision making, and they do not recognize the actual consequences of the monetary policy necessary to stabilize NGDP …

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Austrian Business Cycle Theory 2

Some advocates of the Austrian Business Cycle Theory trace the passage of new money through the economy. The new money enters the economy at a certain place, and those receiving it spend it. And so on. As the money passes through the economy, it distorts relative prices. Since relative prices provide signals and incentives to …

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More Austrian Cycle Theory

I believe that the monetary disequilibrium and the public finance versions of the Austrian Business Cycle Theory hold simultaneously. To the degree the inflation process involves excess supplies of money and money is being lent into existence, the market rate is pushed below the natural interest rate and the demands for more interest elastic goods …

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Will the Austrians soon make “Schweizerwitze” about an increasingly backward country?

What is happening now around the Bundeshaus, can foresee bad for the upcoming election year. “You do not deal with a Federal Council,” said Johann Schneider-Ammann this week. Our Minister of Economic Affairs obviously never mentally left the Emmental. He can not understand that the Swiss Trade Union Confederation, which has been unsuccessful in recent …

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