on April 5, 2008
In this short work, Stephen Horwitz plants macroeconomics -- economics of whole economies, including their changes -- firmly in Austrian microeconomics - economics at the level of individuals and firms. He grafts Austrian trade cycle theory -- its explanation of business cycles -- onto monetary disequilibrium theory, that peculiarly non-Austrian theory of shifts in money championed by Leland Yeager, Axel Liejonhufvud, and Robert Greenfield.
Horwitz analyzes inflation and also deflation, focuses on how changes in money affect capital at a macroeconomic level. He illustrates how fractional reserve free banking fits into macroeconomics - mainly by showing how laissez faire in banking would avoid many of the pitfalls of regulated or central banking.
Horwitz's summary and appraisal of William H. Hutt's work on price rigidities is another reason to recommend this book.