This book analyses the causes and consequences of deflation. In contrast to the widespread belief that deflation would be harmful to the economy as a whole, the author argues that free market deflation is liberating and beneficial. Several myths of deflation are exposed and the reasons for the widespread deflation phobia that serves to justify expansionary monetary policy, i.e., inflation are investigated. Two historical case studies, the growth deflation in the US after the Civil War and the bank credit deflation in Germany during the Great Depression are discussed to illustrate the points made in the theoretical analysis of deflation.

This book, the second of two volumes, explores the impact of Jesús Huerta de Soto and his role in the modern revival of the Austrian School of Economics. Through chapters discussing philosophy and political economy, the nature of capitalism and the foundations of economics are examined in relation to Austrian economics. These ideas and the work of Huerta de Soto are also contextualized within the broader history of economic thought to provide insight into their influence and development. This book highlights and builds upon the intellectual legacy of Jesús Huerta de Soto through its contribution to the Austrian School of Economics. It will be relevant to students and researchers interested in Austrian economics, philosophy, and political economy.

This book, the first of two volumes, explores the impact of Jesús Huerta de Soto and his role in the modern revival of the Austrian School of Economics. The chapters focusing on monetary economics, business cycle theory, and entrepreneurship, combine established ideas with novel topics to explore the new directions forged by Huerta de Soto’s ideas. This approach presents Huerta de Soto’s influence on modern economics. It also outlines his current research paradigm. This book aims to highlight and build upon the intellectual legacy of Jesús Huerta de Soto through its contribution to the Austrian School of Economics. It will be relevant to students and researchers interested in monetary policy and Austrian economics.

This book analyses the causes and consequences of deflation. In contrast to the widespread belief that deflation would be harmful to the economy as a whole, the author argues that free market deflation is liberating and beneficial. Several myths of deflation are exposed and the reasons for the widespread deflation phobia that serves to justify expansionary monetary policy, i.e., inflation are investigated. Two historical case studies, the growth deflation in the US after the Civil War and the bank credit deflation in Germany during the Great Depression are discussed to illustrate the points made in the theoretical analysis of deflation.

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Philipp Bagus, professor of economics at Universidad Rey Juan Carlos in Madrid, is a young scholar with a large influence, having forecast all the problems with the Euro and having persuaded many economists on the Continent that this currency is no better than any fiat currency. In some ways it is much worse because it has cartelized the management of European monetary regimes and created a terrible moral hazard. We often hear analysis of the workings of the Fed. Discussion of the European Central Bank is more rare. Bagus compares the two institutions to show a fundamental difference. Member states of the ECB can run deficits and expect them to be financed by the ECB. This is not true with the Fed. So Europe has a tragedy of the commons at work with its monetary policy that sets up very dangerous incentives for member states. For this reason, the system is unworkable. With this book, Professor Bagus brings his scholarship to English readers, explaining the background to the idea of European unity and its heritage of sound money. He explains that the Euro is not what the older classical liberals had hoped for but instead is a politically managed money that is destined for failure. He writes with a keen sense for economic analytics and empirical detail, offering one of the most accessible and yet rigorous accounts of the emergence of the Euro. He predicts its downfall due to political pressures, bad banking practices, and exploding public-sector liabilities. The analogies with the dollar are indeed close, but with welfare states at a more advanced stage, it will be a race to see which paper currency will crumble first. Professor Bagus brings theoretical power to investigating one of the most important topics in economics today. His arguments and evidence convinced even Jesus Huerta de Soto to withdraw support for the Euro. For this reason, de Soto has written the introduction to this important work.

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It was a modern thriving economy one day, and then, suddenly, the food disappeared from the shelves, the banks closed, and the ships stopped arriving. Iceland in 2008 experienced an unprecedented economic meltdown that struck fear in the hearts of people all over the world. If it could happen here, it could happen anywhere. The economic crisis led to a political crisis, with resignations galore. The whining and wailing about the disaster continues to this day, with most commentators blaming deregulation and the free market. In Deep Freeze, economists Philipp Bagus and David Howden demonstrate that the real cause of the calamity was bad central bank policy. Rates were way too low, banks were too big to fail, housing was implicitly guaranteed, and banks were borrowing short term from abroad to finance long term bonds. The authors discuss the implications of this maturity mismatching and zero in on the central bank policies that encouraged unsound practices. They demonstrate the cause and effect without a shadow of a doubt, using vast amounts of data and a detailed sector-by-sector look at the economy of Iceland. What they find is another instance of the Austrian Theory of the Business Cycle, working itself out in a way that is customized for a time and place. Toby Baxendale writes the introducton to this story that reads like a great novel. It serves as a reminder that central banking policies aren't just about monetary arcana. They affect our lives in profound and sometimes catastrophic ways. The Iceland Freeze is one of the great historical cases that makes Mises's point. Let it always serve as a reminder of what happens when the laws of the market are papered over by politicians and central bankers. This account is likely to remain the definitive one for many years.

Die Osterreichische Konjunkturtheorie (OKT) kann auf eine lange und wechselreiche Geschichte zuruckblicken. Die Geburtsstunde der Osterreichischen Konjunkturtheorie ist das Erscheinen von Ludwig von Mises bedeutendem Werk Die Theorie des Geldes und der Umlaufsmittel" im Jahre 1912. In den darauf folgenden Jahren erfreute sich die OKT zunehmender Akzeptanz und Verbreitung. So konnte Ludwig von Mises 1928 mit Genugtuung feststellen, dass die Zirkulationskredittheorie, wie er die OKT damals bezeichnete, nachdem sie 1912 verlacht" worden sei, heute allgemein anerkannt" werde. Zu dieser Entwicklung hat neben der theoretischen Konsistenz der OKT sicherlich auch beigetragen, dass die Osterreicher unter den wenigen Okonomen waren, die dank ihrer theoretischen Kenntnisse die Grosse Depression vorhergesagt hatten. In jungster Zeit hat die OKT fur Aufsehen gesorgt, da sie die Finanzkrise exzellent erklaren kann. Investmentfondsmanager benutzen die OKT vermehrt auch in der Praxis."

Diplomarbeit aus dem Jahr 2006 im Fachbereich BWL - Wirtschaftspolitik, Note: 2,0, Westfalische Wilhelms-Universitat Munster, 130 Quellen im Literaturverzeichnis, Sprache: Deutsch, Abstract: Die Osterreichische Konjunkturtheorie (OKT) kann auf eine lange und wechselreiche Geschichte zuruckblicken. Die Geburtsstunde der Osterreichischen Konjunkturtheorie ist das Erscheinen von Ludwig von Mises bedeutendem Werk Die Theorie des Geldes und der Umlaufsmittel" im Jahre 1912. In den darauf folgenden Jahren erfreute sich die OKT zunehmender Akzeptanz und Verbreitung. So konnte Ludwig von Mises 1928 mit Genugtuung feststellen, dass die Zirkulationskredittheorie, wie er die OKT damals bezeichnete, nachdem sie 1912 verlacht" worden sei, heute allgemein anerkannt" werde. Zu dieser Entwicklung hat neben der theoretischen Konsistenz der OKT sicherlich auch beigetragen, dass die Osterreicher unter den wenigen Okonomen waren, die dank ihrer theoretischen Kenntnisse die Grosse Depression vorhergesagt hatten. Noch in der theoretischen Diskussion der 1930er Jahre, die von der Auseinan-dersetzung zwischen Keynes und Hayek gepragt war, standen die OKT und ihre Grundlagen im Mittelpunkt des okonomischen Interesses. Im Verlaufe der Auseinandersetzung wendete sich jedoch das Blatt gegen Hayek und die Osterreicher. Die Keynessche Theorie gewann die Oberhand. Fur den Keynesschen Siegeszug erscheinen zwei Begrundungen plausibel. Zum einen ist die OKT nicht einfach zu verstehen, bisweilen nicht intuitiv und scheinbar paradox. Sie baut auf einem komplexen Theoriefundament auf, u.a. einer umfassenden Kapitaltheorie