- Paperback: 125 pages
- Publisher: Ludwig Von Mises Inst; 2 edition (March 1996)
- ISBN-10: 0945466218
- ISBN-13: 978-0945466215
- Product Dimensions: 8.3 x 5.2 x 0.5 inches
- Shipping Weight: 6.4 ounces
- Average Customer Review: 4.7 out of 5 stars See all reviews (20 customer reviews)
- Amazon Best Sellers Rank: #2,559,181 in Books (See Top 100 in Books)
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The Austrian Theory of the Trade Cycle and Other Essays Paperback – March, 1996
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Top Customer Reviews
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.
And yet, "The Austrian Theory of the Trade Cycle" is a narrowly useful tool. It's like a tire gauge, that means everything when there's a problem with the tire, but tells nothing about gas or oil levels. I see few times when the average production supervisor, Sunday-school teacher or working mom would have occasion to read it.
In the introduction, Roger Garrison spells out the differences between the Austrian School and other movements in free-market economics. The Austrian School emphasizes the role of time in decision making. To think of an example, Joe wants to buy a car now that the interest rates are low. But if the interest rates are high, he'll put his money in the bank and wait a year until he replaces the family car.
Ludwig von Mises' essay, which lends its name to the book, reveals the international character of the Austrian School. The essay was translated out of the French, points back to the British Currency School, and alludes to the contribution of Knut Wicksell from Sweden. This theory was, nevertheless, developed by Austrians, beginning with Carl Menger. References to the University of Chicago and to the Ludwig von Mises Institute in Auburn, Alabama, bring the movement to a home in America.
The key point is that a boom produced and prolonged by easy bank money with government support will sooner or later contract into a bust when the easy money turns hard. Just ask any farmer who bought machinery on credit years ago, when inflation was rampant.
Gottfried Haberler demonstrates that economics is, in fact, difficult to reduce to mathematics.Read more ›
Most Recent Customer Reviews
What makes the Austrian economics school different to others? While their are numerous schools of thought which state government spending means more taxes from you, and less... Read morePublished 3 months ago by Meatloaf
Really helpful series of summaries explaining ABCT and how it distinguishes itself from other schools of thought. Read morePublished 11 months ago by Darian P
I like the clarity. I am pleased to gain such a profound understanding of the Market and how it works.
Mises and Hayek are presented in excellent English and easy style. Read more
gave it as a gift he liked it blah blah blah blah blahb labh albha blah blah blah blah blahPublished on January 6, 2013 by brady
This 1996 book contains essays by Ludwig von Mises, Gottfried Haberler, Murray Rothbard, and Friedrich Hayek, as well as an Introduction and summation by Roger Garrison (who is a... Read morePublished on February 16, 2012 by Steven H Propp
For anyone who wants to learn more about Austrian Economics or the Austrian Theory of the Trade Cycle, this is a great choice. Read morePublished on August 20, 2010 by Atilliar
If you don't know the first thing about economics you might want to read Henry Hazlitt's "Economics in One Lesson" first. Read morePublished on October 8, 2009 by W. B. Perry