Value and Exchange

Austrian economists differ with the economic mainstream in many ways, but the break on utility theory is especially critical in understanding the split between the two schools of economic thought.

A yacht—like any good exchanged on the free market—represents countless value-maximizing exchanges and represents an industry that employs thousands of people to provide goods and services to others.

A yacht—like any good exchanged on the free market—represents countless value-maximizing exchanges and represents an industry that employs thousands of people to provide goods and services to others.

Price theory is the cornerstone of the foundation of economic calculation.

Praxeology is the science of human action.

Bob responds to flawed arguments about trade deficits.

Six hundred years before Carl Menger wrote his Principles, Thomas Aquinas was writing about the role of subjective valuation in economic exchanges. His work helped lay the groundwork for further advances in economic theory.

This episode explores the economic implications of deflation, debunking the mainstream fear that falling prices cripple economic growth.

Isaac Newton is best known for his development of mathematics and physics, but he also took a keen interest in economics, especially the relationship of money to economic exchange. He also believed that economic laws, like gravity, were immutable.

The Austrian school recognizes that economic analysis is timeless and the ancient story of “The Poor Man of Nippur” provides an excellent example. From time preference to the structure of production, many of the lessons are contained in this story.