Austrian Economics: Political Economy, Public Policy and Monetary Economics (Session 1)

Sophy Ramírez  | 01 de noviembre de 2018  | Vistas: 153

In this session, Richard Ebeling talks about the different schools of economics and their views about the economic policy since World War I and after World War II.

First, he mentions some historical events and political ideologies such as World War I, the totalitarian collectivism, communism, fascism, and nazism that were an influence for the two economic schools; the Austrian Economists and the ORDO Liberals or German liberals.

This was an era that traumatized the remaining elements in society who were liberally oriented. By 1930 many abdicate of the old-fashioned classical liberalism disappeared or feared that the epoch of individual freedom, economic liberty, limited government, constitutional, personal rights were all going to end.”

Ebeling mentions some of the leading figures of the Austrian economists and German liberals, explains what connected them and the differences they had.

The professor points the two types of government interventions according to the two schools, which are conformable or nonconformable, and how they can affect the economy of a country and the consequences that these interventions may cause.

After this, he explains the social market economy that was the framework for the ORDO liberals, the contradictions it had and why this caused so many problems to the economy of Germany after World War II.

The perversity of this is that they introduce this but by the early 1950’s they, themselves; became in frustrated, disappointed and fear flow.”

He concludes with the Austrian School of Economics critique for the social market economy and comments on some of the thoughts that Ludwig von Mises and Frederich Hayek had, and their concerns about this.