Cykl koniunkturalny w Turcji w latach 2005–2020 — interpretacja austriackiej szkoły ekonomii

Turkey was hit by the recession, defined in a classic way (as negative real GDP growth lasting at least two quarters), three times over the discussed period. The main goal of the central bank of Turkey is to keep inflation as close as possible to the inflation target. The use of the interest rate as a tool to stabilize the economic situation is therefore limited. The country has experienced periods of high inflation which was not temporary, but long-term. Using the approach appropriate to the Austrian School of Economics, the article analyzes the behavior of the Turkish economy in 2005–2020. In the discussed time horizon, two phases of the business cycle have been identified according to the Austrian School of Economics — the first from 2005 to the first quarter of 2014, and the second from the second quarter of 2014 to 2020. It can be assumed that the Turkish economy will enter the third phase of the business cycle in the near future, although it is difficult to determine when it will happen.

Israel Kirzner’s Presence in the History of Economic Thought: A Review of His Professional Engagement in Honor of His 91 Years

This paper analyzes the presence of Israel Kirzner in the History of Economic Thought and focusing on his professional engagement with other economists. His academic trajectory is contextualized on three milestones of the recent history of the Austrian School. The first one is the ending of the socialist economic calculation debate, when the Austrian was considered unconvincing due to the economics’ shift to a general equilibrium model of the economy; in the aftermath of the debate, Kirzner entered at the New York University’s PhD program and was mentored by Ludwig von Mises. At this point, Kirzner started to develop his ideas on entrepreneurship and to aim an audience wider than his Austrian peers. The second is the Austrian Revival in the 1970s, in which the prestigious recovery stage of the Austrian School, thanks to Kirzner assuming a leadership role in the process. The third is in the 1980s, when a more consolidated Austrian School attempts to define itself, as Kirzner retains an Austrian vision founded on the synthesis between Mises and Hayek. It is concluded that Kirzner’s professional engagement was fundamental in the recovery of Austrian theory. He communicated Austrian ideas to a wider audience and synthetized Misesian and Hayekian proposals on the market process. These efforts allow us to recognize a Kirznerian view of the Austrian School, established with the traditional microeconomic theory, but including greater subjectivity on the interpretation of economic phenomena, becoming a more general, more realistic theory.

Entrepreneurship and Decentralised Investment in a Planned Economy

Since the 1980s, authors of the Austrian School have argued that the problem of rational allocation in a planned economy is not computational or technical in nature (static optimisation, with given information) but a question of dynamic efficiency (innovation and the creation of new information), and that this would be impossible without market processes and free entrepreneurship. In this article, we argue to the contrary that a planned economy can effectively drive dynamic efficiency. We first reveal that the Austrian thesis on the impossibility of dynamic efficiency in socialist planning is based on tautological arguments, or on problems already solved by technological development. Secondly, we present an institutional formula for promoting innovative activities and entrepreneurship within a framework of social ownership of the means of production and social control of investment.

Consumption needs and Quality of Life: Austrian Economics and the causes of migration

This paper re-introduces the view on migration causes by the Austrian School of Economics. Austrian economics has not earned its fame in the field of migration, but rather on advocating libertarian economics. Nonetheless Mises outlined a migration model, which can be understood by adding some clarifications by Hayek. Given that the institutional barriers to migration raised by the state are removed, the interplay between market wages, standard wages, attachment component and cost component will determine the migration. While the attachment component relates to fundamental freedoms and to what is referred to as quality-of-life aspects today, the cost component relates to subjective consumption needs. Hitherto unexplored, this model offers new insights to the complex interplay between economic and sociological aspects determining migration drivers.

The Long Rehabilitation of Frank Fetter

Economics has long history of “rehabilitations,” including W.H. Hutt’s rehabilitation of Say’s law, and Alfred Marshall’s attempt to rehabilitate David Ricardo. The rehabilitation of Frank A. Fetter should be as important as either of these, especially for economists working in the contemporary Austrian tradition. The historical records reveal that for the last century there has been underway a nearly unbroken series of efforts, especially by Austrian economists, to rehabilitate Fetter’s contributions and use them to revitalize economic theory. This paper relates this history, which chronicles the rise, decline, and rise again of one of the great American economic theorists. Yet crucially, this is not a story about Fetter alone, but also of the fortunes of the Austrian school and its rise, decline, and renaissance.

The Biblical Ethic of Free Market Exchange

Despite the calls of ‘Christian Socialists’ to bring market forces under the control of the state and its temporal power, the supreme text of Christianity not only supports the existence of free markets, it also prescribes their existence and operation as the normal, God-given means of social interaction. Both the Old and New Testaments of the Bible provide an ethical defense of the market itself, the division of labor, the principle of voluntary exchange, and the condemnation of force, fraud, and coercion. As the introduction of force into society and exchange is always and ever the policy of interventionists and socialists, the aim of this paper is to oppose those doctrines on the grounds of Biblical ethics. This is not to dismiss the pragmatic, historic, or epistemological failings of the interventionists. The dismantling of socialism on these grounds has been thorough and devastating as provided by the Austrian school of economics. This work provides a moral and ethical ground that not only dismisses the socialist agenda, but adds to an already robust body of work that rejects its interventions due to its inefficiencies, failed states, and its pretense of knowledge.