Vienna & Chicago, Friends or Foes?: A Tale of Two Schools of Free-Market Economics [Paperback]

Mark Skousen (Author)

Book Description

Publication Date: July 2005

In his new book, "Vienna and Chicago, Friends or Foes?" economist and author Mark Skousen debates the Austrian and Chicago schools of free-market economics, two schools in constant, heated disagreement in their theories of money, business cycle, government policy, and methodology.

Editorial Reviews

From the Inside Flap

Is the bridge between the Austrian and Chicago schools coming together or moving apart?

In his new book, Vienna and Chicago, Friends or Foes? economist and author Mark Skousen debates the Austrian and Chicago schools of free-market economics, which differ in monetary policy, business cycle, government policy, and methodology. Both have played a successful role in advancing classic free-market economics and countering the critics of capitalism during crucial times and the battle of ideas. But, which of the two is correct in its theories?

Vienna and Chicago, Friends or Foes? includes interviews with economists in both camps, uncovering their strengths and weaknesses. At the end of each chapter, Skousen declares who’s right and who’s wrong either with "Advantage, Vienna," or "Advantage, Chicago." The results are surprising, and Professor Skousen ends his provocative and timely work by attempting to foster common ground between these two warring schools.

From the Chicago school: "This tale is thorough, thoughtful, even-handed, and highly readable. All economists, of whatever school, will find it both instructive and entertaining." —Milton Friedman From the Austrian school: "In his upbeat tale of two schools, Skousen gives us a delightful blend of theory, history, and political science, and shows that there is much common ground and scope for development." —Roger W. Garrison

About the Author

Mark Skousen is a professional economist, financial advisor, university professor and author. He teaches economics at Columbia University, and is the editor of Forecasts & Strategies, an award-winning investment advisory service. He is the author of 20 books, including The Making of Modern Economics. He resides in New York and Florida.

Product Details

• Paperback: 306 pages
• Publisher: Capital Press (July 2005)
• Language: English
• ISBN-10: 0895260298
• ISBN-13: 978-0895260291
• Product Dimensions: 8.5 x 5.5 x 0.8 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 4.4 out of 5 stars  See all reviews (16 customer reviews)
• Amazon Best Sellers Rank: #526,489 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

27 of 28 people found the following review helpful:

5.0 out of 5 stars Dynamite book long overdue in the free market library!, November 12, 2005

By 

Ken Schoolland (Honolulu, Hawaii) - See all my reviews
(REAL NAME)   

This review is from: Vienna & Chicago, Friends or Foes?: A Tale of Two Schools of Free-Market Economics (Paperback)

Finally, there is a book to compare the agreements and disagreements of the Austrian and Chicago schools of economics. This will definitely be required reading for my university students in History of Economic Thought courses. I am especially thrilled to see such an evenhanded approach to so many issues, from causes of the Great Depression to types of monetary systems. Skousen is insightful, humorous, and always full of interesting tidbits that are available in no other source...because he knew so many of the players. His books are always user friendly and this is no exception. He also offers his views, but is ever respectful to all.

22 of 23 people found the following review helpful:

5.0 out of 5 stars Heady history of economics, May 28, 2007

By 

therosen "therosen" (New York, NY United States) - See all my reviews
(VINE VOICE)   

This review is from: Vienna & Chicago, Friends or Foes?: A Tale of Two Schools of Free-Market Economics (Paperback)

This is a heady book - you really have to be interested in economic history and policy to dissect the finer points between the Austrian and Chicago schools of free market economics. Mark Skousen, a free market economist with strong sympathies to both camps (perhaps Austrian in the end?) writes of the history and differences between the two.

The book sides with the Chicago school on it's focus on empirical data, where the Austrians prefer theoretical and logical arguements. The Chicago school suggests business cycles are purely a function of money, while the Austrian school gets solid marks for it's explanations of the temporal (capital overinvestment over time) natures of business cycles.

The book is balanced enough that one can learn and make the most out of both schools. It's rooted in both the history of the ideas, as well as how they've fared over time. It also covers how the ideas have changed over time. (Chicago was initially anti-concentration of industry, but changed over time, as the data suggested industry concentration rarely created true pricing power.) Take the book with a warning though - it's not an introductory textbook, and not aimed at the uninitiated. But for those interested in various approaches to free market economics (it's not a monolith) it's an outstanding resource.

17 of 18 people found the following review helpful:

4.0 out of 5 stars Great book, March 22, 2006

By 

David Lockwood (Canberra, ACT Australia) - See all my reviews
(REAL NAME)   

This review is from: Vienna & Chicago, Friends or Foes?: A Tale of Two Schools of Free-Market Economics (Paperback)

This is one of the best economics books I have read. It provides a good overview of the ongoing debate on some of the most relevant and still unresolved issues confronting economists today. But, unlike many economists, Skousen avoids verbosity and jargon; he presents quite complex issues simply and clearly. I also greatly enjoyed one of his other books, 'The making of modern economics'. Together, these books have challenged my views on many issues, including the causes of the great depression, the role of government in the economy, and the merits of a gold standard. The contribution of the Chicago and Austrian schools was badly neglected by my university lecturers, and I found 'Vienna & Chicago' a thoroughly fascinating read.