Austrian economists
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| Austrian economists | |
|---|---|
| Name | Austrian School |
| Region | Austria; Germany; United States |
| Founded | 1870s |
| Founders | Carl Menger |
| Institutions | University of Vienna, Ludwig von Mises Institute, Austrian School of Economics |
| Notable figures | Ludwig von Mises, Friedrich Hayek, Carl Menger, Eugen von Böhm-Bawerk, Murray Rothbard |
Austrian economists Austrian economists are scholars associated with the tradition originating in late-19th-century Vienna that includes thinkers who developed theories of value, capital, and business cycles. The tradition links figures active in Austria, Germany, the United States, and elsewhere and influenced debates at institutions such as the University of Vienna, the London School of Economics, and the Ludwig von Mises Institute. Prominent participants engaged with contemporaries at venues like the Austrian Parliament and networks including the Mont Pelerin Society.
Overview and definition
The school emerged from work by Carl Menger and contemporaries reacting to debates with followers of David Ricardo and John Stuart Mill and engaging critics such as Karl Marx, Gustav von Schmoller, and representatives of the Historical School of Economics. Austrian economists emphasize methodological individualism articulated against scholars at the University of Cambridge (UK), the University of Chicago, and critics from the Keynesian Revolution associated with John Maynard Keynes. They developed praxeological approaches later defended by Ludwig von Mises and refined by Friedrich Hayek, interacting with economists at institutions like Columbia University and Princeton University.
Historical development
Origins trace to debates in Vienna in the 1870s where Carl Menger published works countering the German Historical School led by figures such as Gustav von Schmoller and exchanging views with scholars like Eugen von Böhm-Bawerk and Friedrich von Wieser. The turn-of-the-century period saw extensions by Böhm-Bawerk on capital and interest, and by Wieser on cost theories, with international engagement including correspondence with Vilfredo Pareto and critiques from Thorstein Veblen. The interwar era featured emigration to institutions including London School of Economics and Geneva by Friedrich Hayek, who later connected with the Mont Pelerin Society and debated John Maynard Keynes and members of the Cambridge School. Post-World War II, figures such as Ludwig von Mises and Murray Rothbard influenced movements in the United States and organizations like the Cato Institute and the Foundation for Economic Education.
Key concepts and theories
Austrian thinkers developed methodological and substantive theories such as marginal utility theory first advanced by Carl Menger against Classical economics proponents like David Ricardo; the Austrian theory of capital advanced by Eugen von Böhm-Bawerk against marginalists at Cambridge University; and the Austrian business cycle theory associated with Ludwig von Mises and Friedrich Hayek in debate with John Maynard Keynes and Milton Friedman. Important methodological positions include praxeology defended by Ludwig von Mises in opposition to empiricist programs at Harvard University and University of Chicago, and tacit knowledge themes developed by Friedrich Hayek engaging with social theorists such as Karl Popper. Austrian analyses of intertemporal capital structure influenced critiques of models from Paul Samuelson and Robert Solow.
Notable economists and schools
Key individuals include founders and successors: Carl Menger, Eugen von Böhm-Bawerk, Friedrich von Wieser, Ludwig von Mises, Friedrich Hayek, Murray Rothbard, Israel M. Kirzner, Ludwig Lachmann, Hans-Hermann Hoppe, Walter Block, Jesús Huerta de Soto, Roger Garrison, Peter Boettke, Joseph Salerno, Richard Ebeling, Oskar Morgenstern, Felix Somary, Wilhelm Röpke, Alexander Rüstow, Rudolf Hilferding (critic), Roberto de Martin, Hans Sennholz, John R. Hicks (debated). Schools and networks include the Vienna Circle intersections, the Austrian School of Economics movement, the Ludwig von Mises Institute, the Mont Pelerin Society, the Cato Institute, and university programs at George Mason University and New York University where debates with scholars from Columbia University and Princeton University continued.
Influence on policy and politics
Austrian ideas influenced policy debates involving privatization advocated in contexts such as Chile under reforms by advisors who cited market liberalism and drew on ideas circulating in Washington, D.C. think tanks like the Cato Institute and the Heritage Foundation (debated). Hayek’s work influenced postwar policy discussions in Britain and at the United Nations through intellectual networks including the Mont Pelerin Society that engaged policymakers in United Kingdom and United States forums. Rothbardian and Misesian strands informed libertarian movements linked to groups such as the Libertarian Party (United States) and policy proposals promoted by organizations including the Foundation for Economic Education and the Mises Institute.
Criticism and controversies
Austrian methods and conclusions have drawn critique from proponents of empirical programs at Harvard University, advocates of Keynesian policy linked to John Maynard Keynes, and modern macroeconomists such as Paul Krugman and Joseph Stiglitz. Debates center on the empirical testability challenged by followers of Milton Friedman and methodological disputes with representatives of the Cambridge School and Chicago School. Controversies also arose over political associations of some proponents, debates over policy prescriptions in Chile and elsewhere, and disputes within the tradition exemplified by disagreements between Murray Rothbard and Friedrich Hayek.
Contemporary trends and institutions
Contemporary Austrian scholarship appears at institutions including the Ludwig von Mises Institute, George Mason University, New York University, and independent journals associated with scholars like Peter Boettke and Israel M. Kirzner. Recent work interacts with fields influenced by thinkers such as Hayek and engages debates with mainstream researchers at Harvard University, University of Chicago, and London School of Economics on topics including entrepreneurship, market process theory, and critiques of central banking by referencing events like the Global Financial Crisis (2007–2008). Networks such as the Mont Pelerin Society and policy centers including the Cato Institute continue to shape public discussion.