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The conception of the founder of the Austrian School, in his book on the philosophy of social sciences, has been described, by the supporters of this school, as a total methodological individualism, upholding the absolute specificity of these sciences to those of nature, and as rejecting the use of mathematics in economics. In fact, the human individual was, for Carl Menger, only the fundamental element of socioeconomic structures. Economic theory was to be inspired by the "atomism" of the natural sciences and to determine the causes, effects and laws of the studied phenomena, with the aim of predicting and controlling them. Empirical study had to unite with conceptual abstraction and mathematics, in proportions determined by the simplicity or complexity of the field of research. These characteristics of the conception of C. Manger, like similar others, make us assume an important (but unconfessed) influence of A. Comte's positivism. However, to prove it, we will try to restore his true philosophy of science, warped by the neo-positivism of the energetist physicists and of the Vienna Circle.

Summary: In contrast to Germany and Switzerland, in Austria schools were closed three times during the COVID-19 pandemic. The school lockdowns and their effects on all stakeholders have been intensively researched;with, for example, over 20 surveys (N> 50,000 people) on the first lockdown in Austria. The findings from these studies are only partially consistent with those from Germany and Switzerland. However, initial comparative show that in Austria and Germany the psychological stress perceived by students and their parents increased significantly over the past year. At the same time, initial performance studies from Germany indicate that no dramatic COVID-19-related learning losses were observed. As in Germany, an increase in the use of digital media in schools and in the learning time at home can be observed in Austria. These findings nourish the hope of similarly low learning losses in Austria. Nevertheless, the pandemic has highlighted the weaknesses and strengths of the Austrian school system. Policymakers are called upon to support in particular those groups that suffered most from the system’s weaknesses during the pandemic. For this purpose, remedial measures for socioeconomically disadvantaged and/or low-performing students are particularly important. Finally, the scientific community is called upon to research characteristics of (crisis-)resilient school systems, schools and teaching in order to be able to derive implications for the future. © Ernst Reinhardt Verlag Munchen Base

Niniejszy artykuł jest próbą analizy i interpretacji stanowiska reprezentantów Szkoły Austriackiej wobec znaczenia i roli jednostki oraz społecznej kooperacji w rozwoju cywilizacji. Celem artykułu jest zbadanie, czy i jak według reprezentantów Szkoły Austria ckiejjednostki i społeczna kooperacja miały wpływ na rozwój cywilizacji, dając podstawy zwiększenia dobrobytu społeczeństwa oraz rozszerzenia ludzkiej wolności, zapewniając pokojowe relacje między ludźmi. Autor skupi się na myśli politycznej autorstwa reprezentantów Austriackiej Szkoły Ekonomicznej w osobach Ludwiga von Misesa, Murraya Rothbarda, Butlera Shaff era czy Thomasa DiLorenzo. Artykuł wykaże, że według reprezentantów instytucje społeczne, takie jak: prawa własności, wolność jednostek, społeczna kooperacja czy wolny rynek, są dorobkiem cywilizacji zachodniej. Omówiony zostanie także pogląd, dlaczego złe idee są główną przyczyną niszczenia cywilizacji. Autor posłużył się podejściem interpretatywnym i analizą treści, Świat Idei i Polityki, Tom 14 (2015): Świat Idei i Polityki

O presente trabalho tem como objetivo analisar a ética e a economia da tributação sob a luz dos ensinamentos desenvolvidos por Hans-Hermann Hoppe. Com supedâneo na Ética Argumentativa Hoppeana, o artigo aborda as consequências econômicas da espoliação legal, valendo-se, para tanto, da metodologia desenvolvida pela Escola Austríaca de Economia, corrente de pensamento econômico da qual Hoppe faz parte. Ademais, Hans Hoppe deixa claro que a tributação deve ser vista – acima de tudo – como um meio de destruição da propriedade e formação de riqueza. Em suma, as obras de Hans-Hermann Hoppe caracterizam-se por uma intransigente defesa moral e intelectual do direito de propriedade privada, cujas lições pouco ortodoxas sintetizam, por um lado, uma profunda crítica ética ao ato de tributar e, por outro, a destruição de riqueza que esse instituto causa.

Steven Kates, historian of economic thought, is a persistent and vocal critic of Keynesian demand side economics. His recent book, _Classical Economic Theory and the Modern Economy_, connects the dots in his critique by explaining, elaborating on, and advocating for classical economic theory. It should be a welcome addition to the reading lists of both amateurs and professional economists, whether one’s interest is in macroeconomics or the history of economic thought.

In this paper I will analyze and criticize Linsbichler’s recent proposition to interpret the fundamental axiom of Praxeology as analytic. I will first describe Linsbichler’s problem situation. I will then describe and criticize Linsbichler’s proposed solution to his problem; namely his interpretation of the fundamental axiom as analytic. I will argue that this idea does not fully utilize critical potentials that are available to improve the fundamental axiom. I will propose an alternative interpretation which I call the ‘critical interpretation’ that conserves the progressive aspects of Linsbichler’s proposal while eliminating undesirable ones.

In this paper I analyse the problem of free will and determinism as it pertains to the Austrian School of Economics. I demonstrate that despite the fact they subscribe to the concept of causality, ...

International audience; Austrian Economics and Public Choice are used to analyze the erratic administrative decision-making process during the Covid-19 crisis. Lockdowns policies had added a new page to the economic planning debate. The paper focus on the centralization/decentralization level of the decision and on the actors’ incentives. We use an Hayekian perspective on knowledge spreading in order to explain the crucial needs of human interactions. Lockdowns had pushed social organization toward more autarkist schemes. These measures confront heavily with the core organization of open societies, creating worry economic consequences without any proved positive effect on public healthcare.; Les difficultés de la décision administrative durant la crise de la Covid-19 sont mises en perspective par les approches de l’École autrichienne et de l’analyse du Choix public. Cette crise et l’encadrement de l’économie par les mesures de confinement ajoutent une page originale au débat sur le calcul économique dans une économie planifiée. L’article propose une réflexion sur le niveau de la prise de décision (centralisation/décentralisation) et de la nécessaire implication des acteurs dans le processus. La diffusion de la connaissance est envisagée selon le point de vue hayékien, ce qui permet d’expliquer que les interactions humaines sont essentielles au fonctionnement des sociétés. Le retour partiel à l’autarcie provoqué par les mesures de confinement heurte de manière frontale l’organisation des sociétés ouvertes avec des conséquences émergentes préoccupantes sans nécessairement avoir des résultats probants sur le plan sanitaire.

Purpose: The study aimed to present the possibility of explaining fluctuations in agriculture using the theory of the business cycle of the Austrian School. The basis of this school's cycle theory is the theory of the structure of production (capital). It means that the production stages are arranged consistently with the technical and temporal process of producing and selling a consumer good. These stages in which capital goods are used are, to a different extent, distant from the final goods. Agriculture is a sector that is more distant from final goods than most of the other economic sectors. According to the Austrian School, the main reason for the cycle is the central bank's monetary expansion, leading to an increase in lending activities. Design/Methodology/Approach: In the analysis the causes and course of cyclical fluctua-tions in agriculture, the subject literature analysis, deduction, and verbal logic were pri-marily used. Findings: Credits go mainly to manufacturers producing in the early stages of the produc-tion structure. In consequence, it widens and lengthens. The result is a more dynamic than in other sectors growth in production, income, and prices, and thus also in agriculture. On the other hand, the narrowing and shortening of the production structure in the decline phase mean large drops in production, income, and agricultural prices. Practical Implications: The knowledge about dynamic changes in production and prices in agriculture enables farms to function better in the economy. While, in agricultural poli-cy, it allows for a better selection of instruments and the appropriate time of their applica-tion. Originality/Value: The research broadens the knowledge of the possibilities of using the theory of the business cycle of the Austrian School to explain the characteristics of the cy-cle in agriculture., peer-reviewed

Thirty years ago, in 1991, the Soviet Union formally came to an end as a political entity on the map of the world. It marked the conclusion of the dream of a new socialist system based on comprehensive government central planning for a better society. Soviet socialist reality was a nightmare of tyranny, economic chaos, along with political privilege and favoritism, which left everyday life for those living in the great socialist experiment one of poverty, corruption and despair. The reason why the socialist experiment in central planning was such a failure can be understood in terms of another anniversary, that being one hundred years since the publication of Austrian economist, Ludwig von Mises’s, famous 1920 essay on “Economic Calculation in the Socialist Commonwealth.” Mises demonstrated why it was inevitable and inescapable that socialism would fail and breed its negative side effects, due to the abolition of the economic institutions of private property, markets, and prices, without which a rational economic order is “impossible.” I recount some of the realities and absurdities of Soviet socialist daily life and its end based my travels in the Soviet Union in its last years. This paper is based on the Presidential Address delivered at the 2020 Society for the Development of Austrian Economics Annual Meeting.

To the present day the circulation credit theory of the business cycle is one of the central themes in Austrian Economics. Its principle examination object is the artificial expansion of circulation credit and the influence the latter has on the economic system. In this paper it is argued that Ludwig von Mises, the originator of this theory, did not expound his theory homogenously. Whereas he stressed the role of the subsistence fund in the original version, he substituted it by other concepts in later publications. It will be shown that, at least in this respect, the original version in Theorie des Geldes und der Umlaufsmittel is more consistent than the later ones, even than the elaborated exposition that can be found in Mises’s most important work, Human Action. Key words: Austrian Theory of the Business Cycle, Ludwig von Mises, Sub - sistence Fund, History of Economic Thought. JEL Classification: B13, B31, E32. Resumen: Hasta hoy, la teoría del crédito circulatorio de los ciclos económi - cos ha sido uno de los temas centrales en la Economía Austriaca. Su objeto principal de investigación es la expansión artificial del crédito circulatorio y su influencia en el sistema económico. En este artículo se objeta que Ludwig von Mises, el autor que planteó de dicha teoría, no la expone de forma ho - mogénea. Mientras que en la versión original acentuó el papel del fondo de subsistencia, sustituyó este concepto por otros en publicaciones posteriores. Se mostrará que, por lo menos en lo que se refiere a esta relación, la versión original en Theorie des Geldes und der Umlaufmittel es más coherente que las posteriores, incluso más consistente que la elaborada exposición de sa-rrollada en su obra más importante, La Acción Humana. Palabras clave: La Teoría Austriaca del Ciclo Económico, Ludwig von Mises, Historia del Pensamiento Económico, Fondo de Subsistencia. Clasificación JEL: B13, B31, E32.

How asset prices should be taken into account in monetary policy is a controversial question in mainstream discussion. These mainstream positions can be differentiated into two broad perspectives: the proactive and the reactive views. The proactive view advocates pricking the asset price bubble, while the reactive view argues against monetary policy targeting asset prices. In this article the relation between asset prices and the Austrian business cycle theory is examined. Following this, a critique of both the proactive and reactive views is provided and implications for monetary policy are deduced. Key words: Austrian Economics, Business Cycles, Asset Prices, Central Banks and their Policies. JEL Classification: B53, E32, E58.

Ibn Khaldun’s contributions to the development of economic thought in his great work al-Muqaddima have received almost no attention in Western academia. This paper studies the similarities between the thought of Ibn Khaldun and that of the leading authors of the liberal Austrian School, including Ludwig von Mises and Friedrich August von Hayek, and The School of Salamanca. Special attention is given to Professor Jesús Huerta de Soto’s work on the theory of the impossibility of socialism. This paper also examines how statist coercion and interventionism in areas such as trade, taxation and individual rights promote injustice and will lead to the eventual demise of civilization. The work of Ibn Khaldun captured the essence of a spontaneous order and of the evolution of institutions, and refuted the theory of the divine origin of kings well before the Age of Enlightenment. Lastly, this paper touches on important economic issues of interest to Austrian liberals such as the division of labor and specialization, cooperation, the role of markets, the price system, savings as a rationale for prosperity, the relation of wealth to population, the Laffer curve, the quantity theory of money, the subjective nature of value, and the correct interpretation of history. Key words: Liberalism, interventionism, coercion, Salamanca School, Austrian School. JEL Classification: B53. Resumen: Las contribuciones de Ibn Jaldún al desarrollo del pensamiento económico incluidas en su gran obra al-Muqaddima han pasado casi desaper - cibidos en el ámbito académico occidental. En este trabajo se examinan las similitudes entre el pensamiento de Ibn Jaldún y el de los principales autores del austro-liberalismo, como Ludwig von Mises y Friedrich August von Hayek, y con el de la Escuela de Salamanca. Prestando especial atención a Jesús Huerta de Soto y su teoría de la imposibilidad del socialismo desde el punto de vista de la coacción: los efectos negativos de la interferencia del Estado en el co-mercio, los impuestos y contra los derechos individuales que derivan en la in-justicia que causa la ruina de la civilización. Mostramos cómo Ibn Jaldún capta la esencia de un orden espontáneo y evolutivo de las instituciones, refuta la teoría del origen divino de los reyes anticipándose a la ilustración ya desde la Edad Media. Y en definitiva, aspectos económicos importantes comunes con las corrientes austro-liberales como son: la división del trabajo o especialización, la cooperación, el papel de los mercados, el sistema de precios, el ahorro como condición para la prosperidad, la riqueza de las naciones por razones de mayor o menor población, el concepto de la curva de Laffer, una intuición de la teoría cuantitativa del dinero, compresión de la naturaleza subjetiva del valor, o la interpretación correcta de la historia. Palabras clave: Liberalismo, intervencionismo, coacción, Escuela Salamanca, Escuela Austriaca. Clasificación JEL: B53.

The essay starts positioning Simmel as a bridge between the money value theories of Menger and Mises, and claiming that his contribution is important in its own right; notably, his idea that money evolves towards more abstract forms as society becomes more complex. It states that this trend exists and that its course has not yet been completed. After that, the theories of money value of Menger, Mises and Simmel are succinctly described, with emphasis on the contributions to Mises’ theory of money value that can be traced back to Simmel. About Simmel’s theory of money value, it is argued that Simmel went one step further than Menger in stating that value is not only subjective but also inter-subjective; such a move is understood as a necessary step in his argument that there is a trend towards more abstract forms of money as society evolves. Key words: Value Theory, Austrian School, Definition of Money, Payment Systems. JEL Classification: B10, B13, E40, E42. Resumen: Este trabajo empieza planteando que Simmel es un puente de unión entre las teorías de valor del dinero de Menger y Mises, y que su contribución es importante por sí misma. En este sentido, destaca su idea de que el dinero se vuelve más abstracto con el desarrollo de la sociedad. Posteriormente, describe sucintamente las teorías del valor del dinero de Menger, Mises y Simmel, poniendo énfasis en las contribuciones de Simmel acerca de la teoría de valor del dinero de Mises. Respecto a la teoría del valor del dinero de Simmel, se plantea que supuso un paso adelante en relación a Menger, al afirmar que el valor del dinero no es solamente subjetivo sino ínter-subjetivo. Esta afirmación es un paso necesario en su argumento de que existe una tendencia hacia formas más abstractas de dinero conforme la sociedad se torna más compleja. Palabras clave: Teoría del valor, Escuela Austriaca, definición de dinero, sistema de pagos. Clasificación JEL: B10, B13, E40, E42.

How to determine how much and what to produce? This is one of the great unknowns in economics. This paper proposes to study the recipes offered by the conventional economics, the keynesian Economics, and the Austrian school of economics, questioning the use of assumptions and the mathematical tools. In addition, we will analyze the concept of dynamic efficiency, which provides a contribution to the debate. The importance of analyzing the various recipes focuses on highlight that the misuse of assumptions may lead to erroneous conclusions by very logical they seem. Key words: Technical Efficiency, Economic Efficiency, Dynamic Efficiency, Production Possibilities Frontier, Indifference Curves. JEL Classification: B10, B25, B41, C61, D24, D50, O12, O33. Resumen: ¿Cómo determinar qué y cuánto producir? Esta es una de las gran-des incógnitas de la economía. El presente trabajo propone estudiar las rece-tas ofrecidas por la economía convencional, el keynesianismo y la Escuela Austriaca de Economía poniendo en tela de juicio el uso de los supuestos y de las herramientas matemáticas. Además, se analizará el con cepto de Eficiencia Dinámica, el cual brinda un aporte al debate. La importancia de analizar las distintas recetas se centra en resaltar que el uso erróneo de supues-tos pueda llevar a conclusiones equivocadas por muy lógicas que parezcan. Palabras clave: Eficiencia Técnica, Eficiencia Económica, Eficiencia Dinámica, Frontera de Posibilidades de Producción, Curvas de Indiferencia. Clasificación JEL: B10, B25, B41, C61, D24, D50, O12, O33.

Kvasnicˇka (2007) attempts to demonstrate that the gold standard may be an unlikely alternative for small economies to revert to. The crux of his argument deals with supply considerations that could prove fatal to a fledgling currency. An influx of gold from the world’s existing gold stock, or its new production could prove to be a destabilising supply-side factor undermining the usability, and hence, adoption, of such a monetary system. We find fault with this for two main theoretical reasons. First, a distinction must be made between gold stock, and monetary gold. Second, the mechanism that creates monetary gold works as a natural break on unrestrained supply growth. Several additional clarifications are necessary as well, among them the role money supply plays in the trade cycle, and the casual relationship that exists between supply and price. Finally, an insightful comparison used linking monetary gold in a small economy to the use of cigarettes in a Second World War P.O.W. camp must be slightly altered to make a true comparison. Kvasnicˇka does a great service to free-marketers by providing a theoretical attack on the choice of gold as a medium of exchange, however, in light of this paper’s theoretical conclusions, the free-market defence of commodity money endures. JEL Classification: B53 – Austrian Economics, E42 – Monetary Systems, E51 – Money Supply.

Faustino Ballvé Pallisé (1887-1958), like almost all the economists of Spanish republican exile of 1939, continues being a great unknown in his own country, in spite of his influential Ten Lessons of Economics, published in several languages and in numerous editions, and at present a classic work of the Austrian School of economics. This article offers a short biography of this Catalan economist, personally and intellectually linked to Mises, and analyses the sources, the structure, the contents and the internacional reception of his Lessons. Key words: Faustino Ballvé; Austrian School of Economics; Spanish Republican Exile. JEL Classification: B31. Resumen: Faustino Ballvé Pallisé (1887-1958), como casi todos lo economistas del exilio republicano español de 1939, sigue siendo un gran desconocido en su propio país, pese a sus influyentes Diez Lecciones de Eco nomía (1965), publicadas en varias idiomas y en numerosas ediciones, y actualmente un clásico de la escuela austriaca de economía. En este trabajo se ofrece una amplia semblanza de este economista catalán, personal e intelectualmente vinculado a Mises, y se analizan las fuentes, la estructura, el contenido y la recepción internacional de sus Lecciones. Palabras clave: Faustino Ballvé; escuela austriaca de economía; exilio republicano español. Clasificación JEL: B31.

The triangle is an integral part of the history of economic thought. It has been used by writers such as Jevons (1871), Taussig (1896), Wicksell (1934, 1969) to illustrate and to help us understand capital theory. Since Hayek (1931) this geometrical figure has been used as a basic pedagogical device to explain the Austrian Business Cycle Theory (ABCT). The purpose of the present paper is to argue that the triangle is highly problematic, if not fatally flawed, and that if ABCT is to be made intelligible this tool of analysis must be either completely jettisoned, or heavily supplemented with a list (see below) of its shortcomings. Moreover in some ways the triangle has been responsible for the relative lack of development of ABCT for over a half century. Key words: Austrian economics, business cycle theory, praxeology, economic geometry, triangles. Clasificación JEL: E3, E32. Resumen: El triángulo es una parte integral de la historia del pensamiento económico. Ha sido utilizado por escritores como Jevons (1871), Taussig (1896), Wicksell (1934, 1969) para ilustrar y ayudarnos a comprender la teoría del capital. Desde Hayek (1931) esta figura geométrica se ha utilizado como un instrumento pedagógico básico para explicar la teoría austriaca del ciclo económico. El propósito de este trabajo es sostener que el triángulo es altamente problemático, sino fatalmente defectuoso, por lo que si deseamos que la teoría austriaca del ciclo económico sea comprendida debemos desecharlo comple-tamente, o complementarlo fuertemente con una lista de sus limitaciones. Además, en algunos casos el triángulo ha sido responsable de la relativa falta de desarrollo de la teoría austriaca del ciclo durante un periodo de medio siglo. Palabras clave: Economía austriaca, teoría del ciclo económico, praxeología, geometría económica, triángulos.

This paper offers a critique of the Austrian theory according to which social time preference determines the proportion between aggregate consumption and aggregate saving, and therefore also the volume of total investment expenditure. We argue that there is no such necessary relationship between the (pure) interest rate and the volume of aggregate investment. Then we discuss the implications of our thesis for growth theory and business-cycle theory, stressing in particular the need to distinguish between two types of growth and two corresponding types of inter-temporal misallocation. Key words: Time Preference, Time Market, Investment Expenditure, Growth Types, Inter-Temporal Mis-allocation, Austrian Business-Cycle Theory, Austrian Macroeconomics. JEL classification: B53, D01, D40, D92, E22, E32, E43. The purpose of this paper is to offer a critique of the theory according to which social time preference determines the proportion between aggregate consumption and aggregate saving, and therefore also the volume of total investment expenditure. This theory is held by virtually all Austrian economists past and present. We will first present it based on Rothbard’s Man, Economy, and State, where it is stated in the clearest and most detailed form. Then we will examine its shortcomings and discuss some implications of our findings.

The centennial of the publication of the first German edition of Ludwig von Mises’s The Theory of Money and Credit offers an excellent opportunity to reconsider a long-standing controversy within modern Austrian economics. This revolves around the question of whether Ludwig von Mises favored 100-percent gold reserve banking imposed by law or free banking based on gold as the ideal monetary system. In this paper, I suggest that this debate is fundamentally misfocused and conflates means and ends. I argue that Mises advocated free banking as the most suitable means for achieving the goal of suppressing the issue of fiduciary media, in the form of bank notes and demand deposits. This goal was first enunciated by the nineteenth-century British currency school and embodied in its famous «currency principle.» My thesis is that Mises was a proponent of both the currency principle and free banking and that he viewed the latter as the indispensable means to regulate the behavior of the money supply according to the former. In defending this thesis, I seek to reframe the debate on Mises’s monetary views in a more meaningful way and to contribute to its resolution. Key words: Mises, Currency School, Free Banking, Currency Principle, Monetary Equilibrium. JEL Classification: B31, B53, E42, E52. Resumen: El centenario de la publicación de la primera edición alemana de The Theory of Money and Credit de Ludwig von Mises, ofrece una exce-lente oportunidad para reconsiderar una controversia duradera dentro de la economía austriaca moderna. Ésta gira en torno a la cuestión de si Ludwig von Mises apoyó una banca de reserva en oro del 100% impues-ta por ley o una banca libre basada en el oro como su sistema monetario ideal. En este trabajo, sugiero que este debate está fundamentalmente mal enfocado y confunde medios y fines. Sostengo que Mises defendió un siste-ma de banca libre como el medio más adecuado para lograr el objetivo de suprimir la emisión de dinero fiduciario en forma de billetes bancarios y depósitos a la vista. Este objetivo fue inicialmente enunciado por la Escue-la Monetaria del siglo XIX e incorporado en su famoso «principio mone-tario.» Mi tesis es que Mises fue proponente del principio monetario y de la banca libre, y que observó a esta última como el medio indispensable para regular el comportamiento de la oferta monetaria conforme al prime-ro. En la defensa de esta tesis, trato de replantear el debate sobre las ideas monetarias de Mises de una forma más relevante y contribuir de este modo a su resolución. Palabras clave: Mises, Escuela Monetaria, Banca Libre, Principio Monetario, Equilibrio Monetario. Clasificación JEL: B31, B53, E42, E52.

Hedge funds and funds of hedge funds are some of the preferred ways to access capital market opportunities by institutional investors and high net worth individuals seeking vehicles of absolute return. Risks and returns are difficult to assess because of skewness and kurtosis so that traditional mean and variance analyses are inappropriate. I assess the possible implications of high leverage finance and financial innovations from an Austrian economic viewpoint on the basis of an econometric analysis of hedge fund risk adjusted returns and a historical consideration of asset price shocks in Thailand and Japan. Key words: Hedge funds, leveraged finance, Austrian economics, monetary policy, risk. JEL classification: B53, C01, E58, D53.

Inside the «economics of war» field of study, very few economists have tried to build a systematic theory of the consequences of the different methods of financing wars. Even fewer economists have ever attempted to elaborate a theory that meets both efficiency and ethical criteria. The first studies in this field can be traced back to the late scholastics. Francisco Suarez (1548-1617) and Francisco de Vitoria (1486-1546) are well known as founders of international law studies. The latter, using his characteristic juridical approach to ethical problems, concludes that the prince can use no neutral person or private property in order to wage a war1. But it was Juan de Mariana (1536-1623) who first tried to unite the ethical and the economic dimension of war finance. Mariana started by analyzing the question of the resources the prince is allowed to use for waging a war. His answer could be described as a libertarian answer; the king is not the owner of the properties of his subjects, and thus, he cannot dispose of them at his whim but only after having gained the acceptance of the owner. Then he turned to the different financial tools, and he described the economic consequences of their use. After dealing with the effects of taxation, inflation and the king’s credit, he recommended that both the king and the citizens be aware of the ethical and practical point of views2. After Mariana, very few thinkers have worked on war finance combining both approaches. In this last century the Austrian School of Economics has contributed to the development of the war finance theory by the hand of Ludwig von Mises and Murray N. Rothbard. The first, concentrated his analysis on the possible use of the means to wage a war, and their consequences. On the contrary Rothbard´s approach is known for its focus on the ethical approach to war finance.

This survey represents a recollection of the contributions of prominent Austrian economists on the subject of the exchange rate determination (Mises, Hayek and Haberler). We review the theoretical fundaments that allow for a comprehensive understanding of the microeconomic forces that determine exchange rates. Then we examine the Purchasing Power Parity Theory, both from a neoclassical and Austrian viewpoint. Finally we inspect the international movements of money and the associations of these with the dynamics of the balance of payments and exchange rate. We leave open the door for future investigations over the idea of incorporating the notion of the Interest rates Parity, intended as a «tendency law», in the Austrian theory. Key words: Exchange rate, Austrian theory, purchasing power parity, balance of payments, international capital movements. Clasificación JEL: F31. Resumen: El presente ensayo representa una recopilación de las con-tribuciones de prominentes economistas austriacos sobre la de-terminación del tipo de cambio (Mises, Hayek, Haberler). En la pri-mera parte se repasan los fundamentos teoréticos que permiten una comprensión exhaustiva de las fuerzas microeconómicas que deter-minan el tipo de cambio. A continuación se examina la teoría de la paridad de poder adquisitivo, tanto desde un punto de vista austriaco como neoclásico. Finalmente se inspeccionan los movimientos inter-nacionales de dinero y las asociaciones de los mismos con las diná-micas de la balanza de pagos y del tipo de cambio. Se deja abierta la puerta para futuras investigaciones sobre la idea de incorporar la noción de la paridad de tipo de interés, entendida como «ley de ten-dencia», dentro de la teoría austriaca. Palabras clave: Tipo de cambio, análisis austriaco, paridad del poder adquisitivo, balanza de pagos, movimientos internacionales de capital.

This article presents an analysis of the current tenets of the Social teachings of the Catholic Church and their possible compatibility with the free market theory and practice. According to the Author, the teachings of the Austrian School of Economics, around creative entrepreneurship and dynamic efficiency, can provide a new and fruitful nexus between the Catholic Church and the free market. Key words: Catholic Social Doctrine, market, classical liberalism, entrepre-neurship, Austrian School. JEL Classification: A10, D40, E24, I30, O10. Resumen: En el presente trabajo se efectúa un repaso a la Doctrina Social de la Iglesia Católica (DSI) analizándose su posible compatibilidad con el liberalismo económico y proponiendo a la Escuela Austriaca de eco-nomía (con su énfasis en la creatividad y la función empresarial) como punto de encuentro más prometedor entre la moral católica y el mercado libre. Palabras clave: Doctrina Social de la Iglesia, mercado, liberalismo, función empresarial, Escuela Austriaca. Clasificación JEL: A10, D40, E24, I30, O10.

It’s well known that Carl Menger, one the most remarkable con-tributors on economic theory, and father of the Austrian School of Economics, devoted a great part of his career to research money origins. According to his studies, money, just as language and eco-nomics came from a spontaneous order, otherwise known as a creation of human interaction, yet not of human design. This means that money didn’t originate from a decree, neither was an invention of a king or governor, but it comes from the regular com-munication between individuals, to satisfy a need. Needless to be said, the necessity of exchange has continuously been present on mankind; facilitating the satisfaction of the infinite human desires. Yet coinage was not present in humanity until the VIth century B.C. in Europe and XVth century A.C. in America1 when Spaniards arrived. Then how could civilizations without a well-developed coinage system progress? The purpose of this paper is to prove and show how the Mayan monetary system could work with-out a coinage system, and how efficient this civilization was solving problems commonly found in barter and commodity money, which were their leading means in commerce.

In his book Socialismo, cálculo económico y función empresarial,1 Dr. Huerta de Soto suggests that society is a spontaneous, dy-namic process of exchange exhibiting an infinite diversity in values. Entrepreneurship is the force that drives this exchange process and consists in the creation, discovery and transmission of information. From Hayek, we recognize that such information is coded by what we know as «the price system». And we also know that when the exchange takes place, it does so with the use of an indirect medium of exchange, also known as money. Oddly, this process remains much ignored. In my personal experience, as soon as one brings it up in polite conversation, a lack of rigorous formalism is pointed out as the main reason behind the ignorance. Austrian economics is considered «soft», and although many have properly answered this observation (i.e. Huerta de Soto), formalization is still absent. Hence, my humble suggestion on how to approach a definitive formalization of the theory. Presence of formalization in a theory is always preferable to absence. In the paragraphs below, I give two examples that I think illustrate this point. But I also show that formalization of the mar-ket process cannot be mathematized. This is due to the fact that behind the market process lies human action, which is creation, and creation is not decidable in the Church-Turing sense. But the result of this creation, economic goods, are. This has strong im-plications. If economic goods are the product of information exchanges, they are algorithms,2 and algorithmic analysis may be applicable.

Neuroeconomics and Evolutionary Psychology contribution to the economic mainstream along the last decade, not only in the realm of economic theory but in the analysis of risk aversion and financial decisions, is really noteworthy. But few things has been said about how these new disciplines are complementary or has something to add to what the economists thought before us. The comparison between the history of economic ideas and the new disciplines of neuroeconomics and evolutionary psychology is missing. In this article an approach is made to the theories of Ludwig von Mises, one of the most renowned members of the Austrian School of Economics. Key words: History of Economic Thought, Austrian School of Economics, neuroeconomics, Evolutionary Psychology, Ludwig von Mises. JEL Classification: B53, D87. Resumen: La aportación, a lo largo de la última década, de la neuroeconomía y la psicología evolucionista a la visión de la ortodoxia, no solamente en el ámbito de la teoría económica, sino también en el estudio del riesgo y las finanzas, es notable. Pero no hay muchos estudios que analicen comparativa-mente cómo complementan o no las ideas de los autores que nos precedieron. En este artículo se estudian algunos aspectos relacionados con las teorías de Ludwig von Mises, uno de los principales representantes de la Escuela Austriaca. Palabras clave: Historia del Pensamiento Económico, Escuela Austriaca de Economía, Neuroeconomía, Economía Evolucionista, Ludwig von Mises. Clasificación JEL: B53, D87.

The election of Pope Francis reanimated the intellectual debate about capitalism and socialism in the Catholic Church. This paper starts from this discus­ sion in order to analyze the economic thinking of the Austrian School in relation to Christian anthropology. It defends capitalism considering the fundamental principles of a free society and the institutional poliarchy. Following Hayek this paper refutes the critics of socialism toward traditional morality. Finally, it defends the point of view that Christianism and socialism are incompatible. Keywords: capitalism, socialism, dynamic efficiency, Catholic Social Teaching, morality. JEL Classification: B53, H11, P17, Z12 Resumen: Con la elección del papa Francisco se ha reavivado el debate intelec­ tual sobre capitalismo y socialismo en el seno de la Iglesia Católica. El presente artículo parte de esta discusión para analizar el pensamiento económico de la Escuela Austríaca en relación con la antropología cristiana. Defiende el capita­ lismo teniendo en cuenta los principios fundamentales de una sociedad libre y la poliarquía institucional. Asimismo —siguiendo a Hayek— refuta la crítica del socialismo a la moral tradicional. Finalmente defiende la incompatibilidad del cristianismo con el socialismo. Palabras clave: capitalismo, socialismo, eficiencia dinámica, Doctrina Social de la Iglesia, moral. Clasificación JEL: B53, H11, P17, Z12.

This article comprehensively examines Friedrich von Wieser’s thoughts on labour. Although Wieser evolved marginalist theories of value and imputation, he set institutional bounds to them. As his so...

Seven years after the outset of the Great recession, the debate continues as to which economic policies are necessary to return to a state of balanced and sustainable growth. In this context, many voices demand more active participation of central banks, including more forceful implementation of monetary policy measures. The Austrian school of economic thought maintains that monetary and financial systems play a key role, but it does so from a foundation that is radically opposed to that of other economic schools. The goal of this article is to analyze Euro Area monetary policy, not only highlighting the benefits of the Euro for its member countries, but also emphasizing the fundamental errors in foundation and design of this policy from the perspective of the Austrian school. Key words: Monetary Policy, Economic and Monetary Union,The Austrian School of Economics, Jesus Huerta de Soto. JEL Classification: B53, E4, E5, E52, E58, E61. Resumen: Tras casi siete años desde el inicio de la Gran Recesión, el debate sobre cuáles son las medidas de política económica necesarias para volver a una senda de crecimiento equilibrado y sostenible todavía no ha cesado. En este contexto, son muchas las voces que reclaman un papel más activo de los bancos centrales, con medidas de política monetaria más contundentes. La Escuela Austriaca de Economía considera que el sistema monetario y finan - ciero juega un papel fundamental, pero lo hacen con unos fundamentos radi-calmente opuestos a los del resto de escuelas. El objetivo de este artículo es analizar la política monetaria única, llamando la atención sobre los bene-ficios que el euro ha supuesto para los países miembros, al mismo tiempo que se destacan los errores de diseño y fundamentación que tal sistema pre - senta desde un punto de vista de la economía austriaca. Palabras clave: Política Monetaria, Unión Económica y Monetaria, Escuela Austriaca de Economía, Jesus Huerta de Soto. Clasificación JEL: B53, E4, E5, E52, E58, E61.

This article is a response to Huber (2013) Notes on the occasion of reading Jesús Huerta de Soto. We first analyze and critique the five main arguments Huber brings forward against Huerta de Soto’s theory and monetary reform plan. Second, we clarify some of Huber’s misunderstandings regarding Huerta de Soto’s theory and Austrian economics in general. Finally, we proceed to criticize the New Currency School and Huber’s ideal monetary system of a 100% fiat money. Key words: 100% banking, New Currency School, Austrian School, Monetary Reform, Huber, Huerta de Soto. JEL Classification: E40, E50, B53, B59. Resumen: Este artículo es una respuesta a Huber (2013) Notes on the occasion of reading Jesús Huerta de Soto. Primero, analizamos y criticamos los cinco argumentos principales que Huber lanza contra la teoría y la reforma monetaria que plantea Huerta de Soto. Segundo, clarificamos algunos de los malenten-didos acerca de la teoría de Huerta de Soto y la Escuela Austriaca en gene - ral. Al final, procedemos a criticar a la Nueva Escuela Monetaria y el siste - ma monetario ideal de Huber, que es un sistema de dinero fiat 100%. Palabras clave: Banca 100%, Nueva Escuela Monetaria, Escuela Austriaca, Reforma Monetaria, Huber, Huerta de Soto. Clasificación JEL: E40, E50, B53, B59.

Understanding how national policy can spur entrepreneurial activity is central to entrepreneurship research. Over the past decade, there has been a limited set of research findings to suggest that social spending may increase entrepreneurship in addition to serving more direct social purposes. We examine the topic through the lens of market failure theory and Austrian economics. In accordance with the Austrian perspective, we theorize that social spending increases the opportunity cost of entrepreneurship, thereby decreasing the attractiveness of entrepreneurship in comparison to salaried employment. Drawing from a sample of 31 developed countries spanning 2004–2011, we investigate the effects of social spending on entrepreneurial attitudes and activity. Our results indicate that country level social spending negatively affects entrepreneurial activity, business ownership, and the public’s view of entrepreneurship as a career choice. The findings suggest that social spending may be better suited for addressing social issues compared to spurring entrepreneurial attitudes or activity. Our findings have implications for both the entrepreneurship and national policy literature.

The main objective of this article is to show how the Austrian School of Economics, based on solid theoretical principles, anticipated, through its main exponents, how the innovation processes, that we are currently experiencing, would develop. The clear identification of current phenomena with the “Austrian” doctrine is the greatest evidence of the full validity of these ideas. We will show, in a non-exhaustive way, how its application to the day-to-day innovation and improvement of processes and products is constant. This article is therefore an exercise in empirical illustration that could lead to future academic work. Keywords: innovation, business culture, business management, business performance, Austrian School of Economics JEL classification: O31, M14, M10, L25, B25 Resumen: El presente artículo tiene como objetivo principal mostrar cómo la Escuela Austriaca de Economía, fundamentada en unos sólidos principios teóricos, anticipó a través de sus principales exponentes, cómo se desarrollarían los procesos de innovación que vivimos actualmente. La identificación clara de fenómenos actuales con la doctrina “austriaca” es la mayor evidencia de la plena vigencia de estas ideas. Mostraremos, de manera no exhaustiva, cómo su aplicación al día a día de la innovación y a la mejora de procesos y productos, es constante. El presente artículo es por lo tanto un ejercicio de ilustración empírica que pudiera dar pie a futuros trabajos académicos. Palabras clave: innovación, cultura empresarial, gestión de empresas, rendimiento empresarial, escuela austriaca de economía Clasificación JEL: O31, M14, M10, L25, B25

This paper evaluates and compares the main philosophic and economic thoughts of the two great liberal minds Michael Polanyi and Friedrich A. von Hayek in regards to the concept of a ‘spontaneous order’. In several of their books and papers, both Michal Polanyi (1941, 1948, 1951) and F.A. von Hayek (1944, 1945, 1964, 1973) strongly emphasised on the impossibility of socialism and the superiority of a free market versus public interventionism. Both highlighted their conviction that central planning cannot be more efficient than a spontaneous order, since knowledge is dispersed (Hayek) and tacit (Polanyi). Although both shared very similar concerns in regards to economic matters, they did not always come to the same conclusions. Thus, also the differences between Polanyi’s and Hayek’s concepts will be discussed, such as Polanyi’s emphasis on defending subsystems as the basic units of society, and his focus on maximizing “public freedom”. Both came to different conclusions in regards to the institutional character of science, and even concluded somewhat differently on the character of knowledge. Most importantly, they developed different concepts on political economy and the ideal role of the State. Moreover, this paper will consider the impact of M. Polanyi on the concept of polycentricity and on the ideas of Elinor Ostrom, while also referring to the different understanding of the role of the State in the ideas of F.A. Hayek compared to other Austrian School economists, such as Murray N. Rothbard. In addition, the paper pretends to historically analyse the emergence of the term ‘spontaneous order’, showing that it is not the product of one mind’s design, but the consequence of the thoughts of several great minds, such as Carl Menger, Ludwig von Mises, F.A. von Hayek, Michael Polanyi, Walter Eucken, and Wilhelm Röpke. Keywords: liberalism, libertarianism, capitalism, Austrian school of economics, interventionism, collectivism, spontaneous order, dynamic efficiency, free market economy, polycentricity, catallactics, extended order, tacit knowledge, dispersed knowledge, F.A. Hayek, Michael Polanyi JEL Classification: A12, B10, B13, B25, H10, H40, K11, P10, P14, P16, P26, P48, P51 Resumen: Este artículo evalúa y compara los principales pensamientos económicos y filosóficos de las dos grandes mentes liberales Michael Polanyi y Friedrich A. von Hayek con respecto al concepto del orden espontáneo. En sus obras principales, tanto Michael Polanyi (1941, 1948, 1951) como F.A. von Hayek (1944, 1945, 1964, 1973) destacaron fuertemente la imposibilidad del socialismo y la superioridad de un mercado libre versus el intervencionismo público. Ambos estaban convencidos de que la planificación central no puede ser más eficiente que un orden espontáneo, ya que el conocimiento es disperso (Hayek) y tácito (Polanyi). Aunque ambos compartían preocupaciones muy similares con respecto a los asuntos económicos, no siempre llegaron a las mismas conclusiones. Por lo tanto, también se discutirán las diferencias entre los conceptos de Polanyi y Hayek, como el énfasis de Polanyi en defender los sub-sistemas como unidades básicas de la sociedad y su enfoque en maximizar la “libertad pública”. Ambos llegaron a conclusiones diferentes con respecto al carácter institucional de la ciencia y al carácter del conocimiento. Además, este artículo considerará sus diferentes conceptos sobre economía política y el papel ideal del Estado, y analiza el impacto de M. Polanyi en el concepto de policentrismo y en las ideas de Elinor Ostrom. Por otra parte, el artículo pretende analizar históricamente la aparición del término “orden espontáneo”, mostrando que no es producto del diseño de una sola mente, sino la consecuencia de los pensamientos de varias grandes mentes, como Carl Menger, Ludwig von Mises, FA von Hayek, Michael Polanyi, Walter Eucken y Wilhelm Röpke. Palabras clave: liberalismo, libertarismo, capitalismo, escuela austriaca de economía, intervencionismo, colectivismo, orden espontáneo, eficiencia dinámica, economía de libre mercado, policentrismo, orden extendido, conocimiento tácito, conocimiento disperso, F.A. Hayek, Michael Polanyi Clasificación JEL: A12, B10, B13, B25, H10, H40, K11, P10, P14, P16, P26, P48, P51

This paper focuses on the current situation and the historical development of Austrian Economics in Madrid. We will analyse the formation of this School as the result of the thesis defended by Joaquín Reig Albiol in the late fifties and the current economic debate surrounding the fractional reserve and other complex issues. In this half-century tour, we will explore three different generations of Austrian economists in Spain, whilst demonstrating that a distinct branch of the Austrian School is today live and well in Madrid. Eventually, we will discover how the Spanish Austrian economists have applied praxeology to contemporary political and economic problems and conclude that a vigorous and growing economic school of thought exists in Madrid. Sin financiación No data JCR 2020 0.392 SJR (2020) Q2, 126/390 Economics, Econometrics and Finance (miscellaneous) No data IDR 2019 UEM

The present paper examines attribute substitution in terms of both heuristics and attribution theory in social psychology. Alternative “old” approaches in psychology were special because they considered choice in terms that were similar to attributional inference in social psychology and anticipated limitations of the static heuristics and biases approach. Attribute substitution plays an important role in reflective reasoning as an independent entity relative to rationality and produces good decisions, even those are sub-optimal and may be influenced by primitive processes such as intuition and habits. The attribute-substitution research enhances our understanding of intense shifts in economic expectations. It makes possible the conceptual incorporation of substantive theoretical constructions, which are inherent in psychological propensities of alternative, and mainly, heterodox approaches in economics such as Post Keynesian, Institutional and Austrian economics. This research agenda paves the way for possible forms of synthesis of those theories with behavioral economics.

Perhaps the one fundamental question of growth theory is why some countries are poor while others are rich. The paper identifies two main lines of research approaching this question, by applying the social analysis of Williamson, and points out that both approaches give an asymmetric answer. The paper applies a critique, which was formulated in the theory of the firm, and compares it with a transaction cost approach. According to this critique, the one approach to economic growth lays too much emphasis on technology, while the other neglects the technological side and emphasizes only the transaction costs and incentives. This paper argues that a new approach, based on the insights of modern Austrian economics, is able to integrate these two sides.

This was originally written in mid-2018 to celebrate the 200-year anniversary of Karl Marx’s birth. Its aim is to identify the position of Marx’s theory of capital in the history of economics. Thus, this article discusses Marx’s critical reception of his predecessors and the investigation after him. In this respect, Hicks’ distinction of capital theoreticians between “fundists” and “materialists” is useful. Marx’s view of capital shows several fundist characteristics in line with the classical economists preceding him. However, viewed from the materialistic perspective of capital theory, he had successors in the Russian planners of socialist centralized economy in the twentieth century. The peculiarity of Marx’s capital theory lies in its critical dimension, which supersedes the positivistic theorizing of ordinary economists. Marx would recognize the relationship of production that emerges out of the antagonistic split between subjective and objective elements (“primitive accumulation”). Thus, we must now ask if two centuries of mankind’s history has discovered a solution or made any progress in this respect.

Kornai is an iconoclastic economist who developed an economic systems paradigm and applied it to the Leninist-Stalinist socialist system.His ideas overlapped with Marxism, with the Austrian school, with the Cambridge Social Ontology Group (CSOG), with Keynesianism, and with evolutionary economics. However, despite rejecting much of mainstream economics, Kornai did not retire to a heterodox bunker. Important results of his application of the systems paradigm were a rejection of market socialism, a rejection of price increases as a solution for shortages in the Leninist-Stalinist socialist system, and advocacy of a privatisation policy based on providing favourable conditions for the development of new private enterprises.

Austrian economists have managed to attract a fair level of interest for their non-mainstream approaches to core issues of how markets function (Mises and Hayek) and how economies develop (Schumpet...

In the aftermath of the Global Financial Crisis (GFC) 2007/2008 the sales of Hayek’s (1944) Road to Serfdom quadrupled, a clear indication of renewed public interest in the views of (neo-) Austrian economists on macro-economic crises, especially financial crises. It is also true that several economists associated with the Austrian school, or those using neo-Austrian insights, correctly predicted the U.S. housing bubble and the subsequent GFC, apparently, a clear vindication of (neo-) Austrian cycle theory (Hunter, 2018). More surprising is that even relatively fierce opponents of neo-Austrian macro-theory have meanwhile begun to accept some Austrian insights. We thus ought to ask, what are the basic tenets of the Austrian Business Cycle Theory (ABCT) and how did it enable some economists to correctly predict the U.S. subprime crisis and its aftermath? In contrast, it is also true that mainstream macro-economists, although struggling heavily to come up with a suitable theoretical explanation of the GFC, neither accept the neo-Austrian explanation of crises, nor its policy implications. Therefore, we also need to ask why mainstream economists dismiss ABCT. Is it the alleged neo-Austrian bias towards the supremacy of an unfettered market economy which is rejected by the mainstream, or is it rather the lack of correspondence between ABCT and the stylized facts of business cycles, such as the positive correlation between consumption and investment? We also need to ascertain to what extent the basic Mises-Hayek cycle theory can be applied to an explanation of the U.S. subprime crisis and the GFC? For example, the neo-Austrian economist Salerno (2012: p. 41) has stated that the unprecedented monetary inventions by the U.S. Federal Reserve (Fed) and the enormous government deficits run by U.S. administrations since the Great Recession (GR) must at some point lead to a 1970s-style period of stagflation. Why has this failed to materialize? We have currently experienced the longest boom in the U.S. economy since the GR, a boom which has been engineered by anti-Austrian ultra-loose monetary policy. How do neo-Austrian authors manage to cope with such a fact? Such are the research questions dealt with in the following paper. Following an introduction to the main topic, the basic elements of ABCT are presented. Then, neo-Austrian extensions of basic ABCT are applied to an explanation of the U.S. housing bubble and the subsequent GFC. This is followed by discussion of radical neo-Austrian critiques of the unconventional monetary policies used to reflate the U.S. economy after the GR. The main question here is why such policies can continue without producing an economic downturn or bust. The paper concludes with a summary of neo-Austrian views on the GFC and its pre-Corona aftermath.

The importance of China’s economy and the instability of China’s fi-nancial system are in the spotlight recently. This paper uses Austrian Business Cycle Theory to gauge the potential risks of China’s economy. The approach of this paper is a sector analysis, focusing on China’s monetary and financial system, shipping industry, and real estate industry, especially the state-owned enterprises in those sectors. We conclude that China’s central banking system is hurting China’s economy and we also propose reforms to overhaul the system, according to the perspective of praxeology and Austrian School Econom-ics. Keywords: Austrian Business Cycle Theory, China’s banking system, China’s economy. JEL Classification: B53, D8, E310, E32, E52, H12, N15, N27, N45, N65, O53, P11, R3, R4, Y10. Resumen: La importancia de la economía china junto con la reciente inestabili-dad del sistema financiero de China, preocupan al resto del mundo. Este artí-culo usa la Teoría Austriaca del Ciclo Económico para identificar los riesgos potenciales de la economía de China. En este artículo realizaremos un análisis sectorial, enfocado en el sistema monetario y financiero de China, el sector de la construcción, la industria marítima y, en especial, las empresas estatales de dichos sectores. Concluimos que el actual sistema de banca central en China está dañando a su economía y proponemos soluciones desde la perspectiva de la praxeología y la Escuela Austriaca de Economía. Palabras clave: Teoría austriaca del ciclo económico, sistema bancario chino, economía china.

When Carl Menger published his work Principles of Economics in 1871, he surprised everyone with his brilliance and ability to reconsider basic concepts of economics. His new vision of ideas such as utility, value, and prices turned out to be truly masterful and served to construct the foundations for later studies carried out by the Austrian School of Economics. Nonetheless, these concepts and definitions have sometimes been corrupted by the strong influen-ce of other schools of economics that have had a greater capacity to impose their ideas and to shape current mainstream economics. The current paper seeks to rescue the basic concepts devised by Menger, explaining the why and the validity of his original content. In order to correct errors of interpretation and to facilitate precise communication, not only examples for clear understan-ding will be given but also new complementary contributions will be offered. Key Words: Austrian School, Political Economy, utility, value, prices. JEL Classification: B25, D01, D46. Resumen: Cuando Carl Menger publicó su obra Principios de Economía Políti-ca en el año 1871, sorprendió con su brillantez y su capacidad para replan-tearse los conceptos básicos que conforman la economía. Su nueva visión so-bre ideas como la utilidad, el valor o los precios, resultó ser verdaderamente magistral, y sirvió para poner las bases de todos los estudios posteriores lleva-dos a cabo por la Escuela Austriaca de Economía. Sin embargo, dichos con-ceptos y definiciones se han visto en ocasiones adulterados por la fuerte in-fluencia de otras escuelas de economía que han tenido más capacidad para imponer sus ideas y para formar el mainstream económico actual. El presente trabajo se propone rescatar aquellos conceptos básicos elaborados por Men-ger, explicando el porqué y la validez de su contenido original; utilizando para ello, no sólo ejemplos que mejoren su comprensión, sino, también, nuevas aportaciones complementarias, al objeto de corregir errores de interpretación y facilitar su correcta transmisión. Palabras Clave: Escuela Austriaca, Economía Política, utilidad, valor, precios. Clasificación JEL: B25, D01, D46.

This paper provides a critical reading of Janek Wasserman’s The Marginal Revolutionaries: How Austrian Economists Fought the War of Ideas. Wasserman depicts the evolution of the Austrian School from the 1860s until today, a particularly illuminating narrative for the readers of this journal. The breadth of portrayed economists, their cultural embeddedness in Austrian and US contexts, and the complexity of configurations across the school’s generations create a rich and readable story. The last third of the book suffers from allegations about the ideological agenda and institutional power of the Austrian economists which sometimes lack sufficient substantiation. The paper indicates how both in their theorizing and in their political activities, the Austrian economists can be seen as reformers instead of revolutionaries, and as constitutionalists instead of anti-democrats. Despite these disagreements, Wasserman’s portrayals evoke largely fair and challenging impulses both to scholars working in the Austrian research program and to those interested in the Austrian School’s long history, regardless of one’s ideological positions.

Austrian economics is the only school of economic thought that is well represented in the study of entrepreneurship. Austrian theories, concepts, and perspectives on entrepreneurship make up an important part of what is modern entrepreneurship theory. Yet while entrepreneurship scholars often take inspiration or even borrow from Austrian economics, the reverse is scarcely true. Even so, there is reason to believe both sides would benefit from more interaction and collaboration. The aim of this special issue is to facilitate a synergistic discussion between Austrian economists with an interest in entrepreneurship theory and entrepreneurship scholars with an interest in the Austrian approach.

Mark Thornton’s The Skyscraper Curse exposes readers to the unique phenomenon of the Skyscraper Index and provides them with a comprehensive overview of Austrian business cycle theory (ABCT). The Skyscraper Index, as readers learn in the first few pages of the book, shows a correlation between the development of a new tallest building in the world and the business cycle. Although the Skyscraper Index does have a strong track record, the skyscrapers are not the heart of the matter but rather the policies of the Federal Reserve that promote and encourage skyscraper development.

The concept of entrepreneurial opportunity has undergone a period of useful critique and refinement since Venkataraman (1997) and Shane and Venkataraman (2000) employed the term as one of the defining features of entrepreneurship studies. This paper presents a novel Austrian reinterpretation of this concept as an intersubjective phenomenon that emerges from the dual entrepreneurial process of discovery and judgment. Just as markets can be described as price discovery procedures for existing goods, services, and resources, entrepreneurship can be usefully described as a price discovery procedure for future goods, services, and resources. This view retains the essential elements of Kirzner’s (1973) approach while also refining the opportunity discovery concept within an evolutionary realist framework for understanding entrepreneurial motivation and action.

Many scholars have pointed to Austrian subjectivism as an appropriate framework for understanding and studying entrepreneurship. Yet very few empirical studies in the field of entrepreneurship have applied a subjectivist lens. This research article responds to calls for more subjectivist entrepreneurship research by theoretically refining and empirically extending the subjectivist approach to team entrepreneurship. The findings presented in this study, which are based on data from 124 high-tech start-ups founded in Norway, suggest that positive internal and external team dynamics contribute to team effectiveness, as measured by the lead entrepreneur’s subjective assessment of his or her team. Implications for theory and practice are discussed.

New institutional economics (NIE) and Austrian economics (AE) both emphasize the role that institutions play in facilitating or impeding entrepreneurship and hence economic growth. In this paper, we discuss the complementarities between AE and NIE for advancing our understanding of the relationship between institutions and entrepreneurship. We argue that a subjectivist view of institutions, entrepreneurial microfoundations, and capital heterogeneity can enrich our understanding of within-country variation in entrepreneurial strategies, institutional evolution, and the relationship between institutions and production processes. We hope our discussion serves as an invitation both for further theoretical collaboration between the two camps and as a spur to applied research at the intersection of institutions and entrepreneurship.