Subjectivism In Microeconomics

A' change in methods of production in a given state of knowledge' is, strictly speaking, a contradiction in terms. When we ask how much of the subjectivist view of human action, sketched briefly, if inadequately, in the last section, has been absorbed into the main body of modern economic thought, it will be best to distinguish, as regards the latter, between micro- and macro-economics. For the relationship between the subjectivist view and macroeconomics, and in particular the treatment it...

Monetary Overinvestment Theory And Adjustment

We have thus far attempted to describe the neoclassical notion of adjustment, and to examine the conditions contingent upon its attainment. We came to the conclusion that this type of analysis fits best the case of partial depressions, where the system as a whole has remained unaffected, but encounters considerable difficulties in the case of overinvestment crises. We now shall have to study the views of an important group of neoclassical economists, the outstanding representative of whom is...

Ludwig Lachmann And The Austrian Alternative

The significance of Lachmann's work, and of the so-called Austrian school of which it is a part, may be seen in terms of this danger. The Austrians were not of course innocent of all of the modernistic tendencies of the last couple of centuries, but they were arguably the one school of thought in the history of economics that resisted more of these tendencies than any other. They may be seen as the school that offers the most promise of rescuing the truths of economics from the sinking ship of...