Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-28T08:53:14.179Z Has data issue: false hasContentIssue false
  • English
  • Français

Capital Theory, Inflation and Deflation: The Austrians and Monetary Disequilibrium Theory Compared

Published online by Cambridge University Press:  11 June 2009

Steven Horwitz
Get access Rights & Permissions [Opens in a new window]

Extract

At one level or another, economic processes make it possible for diverse individuals to coordinate their activities. Although microeconomists have long recognized this insight, and purport to explain it with their tools, macroeconomists often seem to lose sight of the centrality of coordination when they focus on the movements of, and relationships among, aggregate variables. One problem with emphasizing aggregates is that, in reality, economic coordination ultimately takes place at the microeconomic level, which poses the issue of microfoundations. However, recognizing that micro issues are the fundamental ones does not deny a role for distinctly macroeconomic analysis. Macroeconomic analysis should show how movements in markets for goods that are pervasive (i.e., affect some very large number of microeconomic markets simultaneously), help or harm the coordination processes taking place in those individual markets and thus influence the determination of aggregate measures such as total income and employment.

Type
Articles
Information
Journal of the History of Economic Thought , Volume 18 , Issue 2 , Fall 1996 , pp. 287 - 308
Copyright
Copyright © Cambridge University Press 1996

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Böhm-Bawerk, Eugen. 1923. The Positive Theory of Capital, Stechert, New York.Google Scholar
Brown, Harry G. 1910. “Commercial Banking and the Rate of Interest,” Quarterly Journal of Economics, 24, 743–49.CrossRefGoogle Scholar
Buchanan, James M. 1983. “Monetary Research, Monetary Rules, and Monetary Regimes,” Cato Journal, 3, no. 1, Spring, 143–46.Google Scholar
Cassel, Gustav. 1927–28. “The Rate of Interest, the Bank Rate, and the Stabilization of Prices,” reprinted in AEA Readings in Monetary Theory, Blakiston Company, New York, 1951.Google Scholar
Clower, Robert W. 1984. “Introduction to Monetary Theory: Selected Readings,” reprinted in Donald, Walker, ed., Money and Markets, Cambridge University Press, Cambridge, 1988.Google Scholar
Davenport, Herbert J. 1913. The Economics of Enterprise, Augustus M. Kelley, New York, 1968.Google Scholar
Dowd, Kevin. 1995. “Deflating the Productivity Norm,” Journal of Macroeconomics, 17, no. 4, Fall, 717–32.CrossRefGoogle Scholar
Garrison, Roger. 1984. “Time and Money: The Universals of Macroeconomic Theorizing,” Journal of Macroeconomics, 6, no. 2, Spring, 197–213.CrossRefGoogle Scholar
Glasner, David. 1989. “On Some Classical Monetary Controversies,” History of Political Economy, 21, no. 2, Summer, 201–29.CrossRefGoogle Scholar
Greenfield, Robert L. 1994. Monetary Policy and the Depressed Economy, Wadsworth, Belmont.Google Scholar
Greenfield, Robert L. and Yeager, Leland B.. 1983. “A Laissez-Faire Approach to Monetary Stability,” Journal of Money, Credit, and Banking, 15, no. 3, August, 302–15.CrossRefGoogle Scholar
Hayek, F. A. 1928. “Intertemporal Price Equilibrium and Movements in the Value of Money,” reprinted in Roy, McCloughry, ed., Money, Capital and Fluctuations: Early Essays, University of Chicago Press, Chicago, 1984.Google Scholar
Hayek, F. A. 1933. Monetary Theory and the Trade Cycle, Augustus M. Kelley, New York 1966.Google Scholar
Hayek, F. A. 1935. Prices and Production, Augustus M. Kelley, New York 1967.Google Scholar
Hayek, F. A. 1939. Profits, Interest and Investment, Augustus M. Kelley, Clifton, N.J., 1975.Google Scholar
Hayek, F. A. 1978. The Denationalisation of Money, Institute for Economic Affairs, London.Google Scholar
Hayek, F. A. n.d. “The Muddle of the Middle,” unpublished ms, part of an early draft of The Fatal Conceit, University of Chicago Press, Chicago, 1988.CrossRefGoogle Scholar
Horwitz, Steven. 1988. “Misreading the ‘Myth’: Rothbard on the Theory and History of Free Banking,” reprinted in Boettke, Peter J. and Prychitko, David L., eds., The Market Process: Essays in Contemporary Austrian Economics, Edward Elgar, Aldershot, 1994.Google Scholar
Horwitz, Steven. 1991. “The Political Economy of Inflation: Public and Private Choices,” Durell Journal of Money and Banking, 3, no. 4, November, 26–37.Google Scholar
Horwitz, Steven. 1992. Monetary Evolution, Free Banking, and Economic Order, Westview Press, Boulder.Google Scholar
Hutt, William H. 1979. The Keynesian Episode, Liberty Press, Indianapolis.Google Scholar
Lachmann, Ludwig. 1978. Capital and Its Structure, Sheed Andrews and McMeel, Kansas City.Google Scholar
Leijonhufvud, Axel. 1981a. “Effective Demand Failures,” in idem, Information and Coordination, Oxford University Press, New York, 1981.Google Scholar
Leijonhufvud, Axel. 1981b. “The Wicksell Connection: Variations on a Theme,” in idem, Information and Coordination, Oxford University Press, New York, 1981.Google Scholar
Leijonhufvud, Axel. 1988. “Did Keynes Mean Anything? Rejoinder to Yeager,” Cato Journal, 8, no. 1, Spring/Summer, 209–17.Google Scholar
Lewin, Peter. 1994. “Knowledge, Expectations and Capital: The Economics of Ludwig M. Lachmann,” Advances in Austrian Economics, 1, JAI Press, Greenwich, 233–56.Google Scholar
Lutz, Friedrich A. 1969. “On Neutral Money,” in Streissler, E. et. al., eds., Roads to Serfdom: Essays in Honour of F. A. Hayek, Routledge and Kegan Paul, London.Google Scholar
Mises, Ludwig von. 1912. The Theory of Money and Credit, Liberty Press, Indianapolis, 1980.Google Scholar
Mises, Ludwig von. 1966. Human Action, Henry Regnery, Chicago.Google Scholar
Myrdal, Gunnar. 1939. Monetary Equilibrium, Augustus M. Kelley, New York, 1965.Google Scholar
Robertson, Dennis H. 1928. “Theories of Banking Policy,” reprinted in Essays in Monetary Theory, Staples Press, New York, 1940.Google Scholar
Robertson, Dennis H. 1957. Money, University of Chicago Press, Chicago.Google Scholar
Rothbard, Murray N. 1962. Man, Economy, and State, Nash Publishing, Los Angeles.Google Scholar
Rothbard, Murray N. 1963. America's Great Depression, Richardson and Snyder, New York, 1983.Google Scholar
Say, J.-B. 1821a. “Letters to Mr. Malthus,” in idem Letters to Mr. Malthus and A Catechism of Political Economy, Augustus M. Kelley, New York, 1967.Google Scholar
Say, J.-B. 1821b. “A Catechism of Political Economy,” in idem, Letters to Mr. Malthus and A Catechism of Political Economy, Augustus M. Kelley, New York, 1967.Google Scholar
Sechrest, Larry J. 1993. Free Banking: Theory, History, and a Laissez-Faire Model, Quorum, Westport.Google Scholar
Selgin, George A. 1988. The Theory of Free Banking: Money Supply Under Competitive Note Issue, Rowman and Littlefield, Totowa.Google Scholar
Selgin, George A. 1995a. “The Case for a ‘Productivity Norm’: Comment on Dowd,” Journal of Macroeconomics, 17, no. 4, Fall, 733–40.CrossRefGoogle Scholar
Selgin, George A. 1995b. “The ‘Productivity Norm’ versus Zero Inflation in the History of Economic Thought,” History of Political Economy, 27, no. 4, Winter, 705–35.CrossRefGoogle Scholar
Selgin, George A. and White, Lawrence H.. 1987. “The Evolution of a Free Banking System,” Economic Inquiry, 25, July, 439–57.CrossRefGoogle Scholar
Wagner, Richard. 1977. “Economic Manipulation for Political Profit: Macroeconomic Consequences and Constitutional Implications,” Kyklos, 30, no. 3, 395–410.CrossRefGoogle Scholar
Warburton, Clark. 1946. “The Misplaced Emphasis in Contemporary Business Fluctuation Theory,” reprinted in AEA Readings in Monetary Theory, Blakiston Company, New York, 1951.Google Scholar
Warburton, Clark. 1966. Depression, Inflation, and Monetary Policy, Johns Hopkins Press, Baltimore.Google Scholar
Warburton, Clark. 1981. “Monetary Disequilibrium Theory in the First Half of the Twentieth Century,” History of Political Economy, 13, no. 2, Summer, 285–99.CrossRefGoogle Scholar
White, Lawrence H. 1984. Free Banking in Britain, Cambridge University Press, Cambridge.Google Scholar
Wicksell, Knut. 1898. Interest and Prices, Augustus M. Kelley, New York, 1965.Google Scholar
Wicksell, Knut. 1935. Lectures in Political Economy, 2: Money, Routledge and Kegan Paul, London, 1950.Google Scholar
Woolsey, W. William. 1992. “A Model of the BFH Payments System,” Southern Economic Journal, 59, no. 2, October, 260–72CrossRefGoogle Scholar
Yeager, Leland B. 1968. “Essential Properties of the Medium of Exchange,” Kyklos, 21, January/March, 45–69.CrossRefGoogle Scholar
Yeager, Leland B. 1986. “The Significance of Monetary Disequilibrium,” Cato Journal, 6, no. 2, Fall, 369–99.Google Scholar