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Austrian economics invariably predicts gloom and doom as a result of policy intervention, which by definition create “artificial” booms and bubbles. Events on the ground have forced even some of its proponents to now admit that these can last much longer than many thought. However, we don’t need the Austrian perspective for that insight, and […]

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Austrian economics favors ‘hard money’ policies that are curiously popular in the financial sector. It’s curious because hard money policies don’t seem to serve the financial sector, acting as a bit of a brake on expansion. Its predictive power in the post-financial crisis world also leaves much to be desired; investors would have done poorly […]

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The best general explanation for the weak world economy is an excess of savings over investment; weak business investment is a crucial part of this. Austrian economics has difficulties explaining the weak business investment, as low rates would normally lead to an excessive capital formation boom. The structural factors that are invoked to explain this […]

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Austrian economist tends to blame soft money, market inefficiencies and a bloated state for the Greek crisis. However, since these have been present for decades in the Greek economy, they can’t be responsible for the unprecedented collapse. In our view, the combination of hard money, the constraints of a fixed currency system and unprecedented austerity […]

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Some market observers like Peter Schiff have warned us that many markets and even the whole economy are kept up by asset purchases by the Fed. So we should expect the recovery to stall, the dollar, stocks and bonds to fall when the Fed stops these purchases. Not only is this not happening, some of […]

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Huh?! The curious world of Austrian economics

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