Studies in Austrian macroeconomics / edited by Roger Koppl and Steven Horwitz.

Format:

Book

Contributor:

Horwitz, Steven.

Koppl, Roger, 1957-

Series:

Advances in Austrian economics ; 1529-2134. v. 20.

Advances in Austrian economics, 1529-2134 ; v. 20

Language:

English

Subjects (All):

Macroeconomics.

Austrian school of economics.

Physical Description:

1 online resource (297 p.)

Edition:

First edition.

Place of Publication:

United Kingdom : Emerald, 2016.

Summary:

The US housing bubble and the ensuing financial crisis and recession, as well as the ongoing slow recovery, have prompted a renewal of interest in the business cycle theory associated with the Austrian school of economics. Over the last thirty years, Austrian economists have extended and refined that theory while also deploying Austrian insights in other areas of monetary theory and macroeconomics. In this volume, a number of macroeconomists influenced by the Austrian school demonstrate its explanatory power by applying those ideas to a variety of historical and contemporary issues. Several of the papers focus on the differences between the US and Canadian experiences during the early 21st century, while other contributors offer critical extensions of Austrian monetary and business cycle theory. The volume also includes empirical applications to the housing boom and bust, and several papers consider the place of Austrian macroeconomics within the schools approach to political economy and public policy more generally. Studies in Austrian Macroeconomics shows the breadth and depth of modern macroeconomics in the Austrian tradition.

Contents:

Front Cover

Studies in Austrian Macroeconomics

Copyright page

Contents

List of Contributors

About the Contributors

Introduction: Money, Cycles, and Crises in the United States and Canada

Notes

References

Part I: Austrian Monetary and Business Cycle Theory

Financial Foundations of Austrian Business Cycle Theory

Introduction

Why a Financial Application to the ABCT?

Roundaboutness as Financial Duration

Roundaboutness and APP: Böhm-Bawerk, Hayek, and Hicks

Roundaboutness and Duration

A Financial Application to the ABCT

ABCT in General

Project Rankings are Affected by Changes in the Discount Rate

Aggregate Roundaboutness

Applied Cases of the ABCT and Variations on a Theme

Further Extensions to the ABCT

Inflation and Cantillon Effects

Roundaboutness and Risk

Concluding Remarks

Appendix A: Duration and Hayek's Triangle

Appendix B: Duration and Convexity

The Optimal Austrian Business Cycle Theory

Traditional ABCT and Our Point of Departure

Rational Expectations and Systematic Errors

Optimal Resource Reallocation

Conclusion

Hayek on the Neutrality of Money

Hayek on Money, Prices, and the Price Level

Varying Concepts of Neutral Money

Neutral Money and Monetary Institutions

Acknowledgments

On the Empirical Relevance of the Mises-Hayek Theory of the Trade Cycle

Reviewing the Data

Stages of Process and the Structure of Production

Industrial Production

Producer Price Index

Empirical Analysis

Expansionary Monetary Policy at the Federal Reserve in the 1920s

Literature Review

Monetary Figures

The Factors behind the Expansion.

The Increase in the Money Multiplier

The Increase in Total Bank Reserves

Part II: The US and Canadian Experience Compared

The Political Regime Factor in Austrian Business Cycle Theory: Historically Accounting for the US and Canadian Experiences ...

ABCT'S Opening to Political Regime Analysis

The Regime Framing of Finance

Two Arcs of Financial Development

Acknowledgment

An Empirical Comparison of Canadian-American Business Cycle Fluctuations with Special Reference to the Phillips Curve

Data

Empirical Results

Augmented Dickey-Fuller (ADF) Tests for Unit Roots and Stationarity

Determination of Optimal Lag-Length

Likelihood Ratio Tests of Restrictions, Block Exogeneity, and Granger Causality

Cointegration Tests

VAR Impulse Response Functions

Expanded VAR Estimates with Seasonal Dummies

Discussion

Canadian versus US Mortgage Markets: A Comparative Study from an Austrian Perspective

Government Involvement in US and Canadian Mortgage Markets

US Entanglement versus Canadian Sclerosis

Entangled Political Economy: Fannie and Freddie in the United States

"Boring but Effective": The Sclerotic Canadian Mortgage Market

Conclusions

Part III: The Political Economy of Regulation and Crisis

Banking Regulation and Knowledge Problems

Basel RBC Regulation

Origins of Basel Regulations

How RBC Regulation Works

RBC and Financial Crises

Hayekian Knowledge Problems

Knowledge and Individual Decision-Making

RBC Regulation as a Knowledge Problem

Regulation since the Crisis

Recent Changes in RBC Regulations.

New Regulations and the Knowledge Problem

The Comparative Political Economy of a Crisis

The Anatomy of the Financial Crisis

Tacit Presuppositions and the Game of Political Economy

Case 1: Trusting Citizens with a Capable, but Insincere Government

Case 2: Trusting Citizens with a Sincere, but Incapable Government

Case 3: Trusting Citizens with a Sincere and Capable Government

Case 4: Distrusting Citizens with a Sincere and Capable Government

Extraordinary Measures amidst an Extraordinary Crisis

Long-Run Costs of Short-Run Relief Programs

Policy Design and Execution in a Complex World: Can We Learn from the Financial Crisis?

History, Memory, and Politics

All Social Science Involves Complexity

What Is Complexity?

Causal Ambiguity and the Burden of Proof

Can Complex Markets Be Adaptive and Ordered?

The Existence of Social Institutions

Whence Institutions? Institutions Are Networks

Networks and Cycles

Are Our Embedded Tacit Constitutions in Danger?

References.

Notes:

Description based upon print version of record.

Includes bibliographical references.

Print version record

ISBN:

9781786352736

1786352737

OCLC:

949930305