The Review of Austrian Economics

, Volume 30, Issue 1, pp 1–18

New Austrian macro theory: A call for inquiry

Article

Abstract

This essay sketches some contours of what we think can reasonably be called New Austrian macro theory. By New Austrian, macro we mean a style of theorizing that incorporates the core of traditional or Old Austrian macro and pushes that core in new directions by using new analytical tools and methods. We would note that New Austrian is not some invention or construction de novo, but is a product of blending some traditional Austrian insights and formulations with new analytical formulations that were never part of the Austrian tradition but which can multiply the analytical oomph of that tradition. In this essay, we explain that the traditional Austrian macro theory suffers not from analytical wrong-headedness but from an underdevelopment of those complementary pieces of intellectual capital that would render Austrian macro once again a significant player in the efforts of economists to theorize about the properties of economic systems in their entirety.

Keywords

Structure of production Dispersed knowledge Equilibrium vs. non-equilibrium theory Creative systems theory Macro-foundations for micro 

JEL classification

B53 D80 E02 E14 E42 

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.Department of Political EconomyKings College LondonLondonUK
  2. 2.Department of EconomicsGeorge Mason UniversityFairfaxUSA

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