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New Austrian macro theory: A call for inquiry

Author

Listed:
  • Paul Lewis

    (Kings College London)

  • Richard E. Wagner

    (George Mason University)

Abstract

This essay sketches some contours of what we think can reasonably be called New Austrian macro theory. By New Austrian, macro we mean a style of theorizing that incorporates the core of traditional or Old Austrian macro and pushes that core in new directions by using new analytical tools and methods. We would note that New Austrian is not some invention or construction de novo, but is a product of blending some traditional Austrian insights and formulations with new analytical formulations that were never part of the Austrian tradition but which can multiply the analytical oomph of that tradition. In this essay, we explain that the traditional Austrian macro theory suffers not from analytical wrong-headedness but from an underdevelopment of those complementary pieces of intellectual capital that would render Austrian macro once again a significant player in the efforts of economists to theorize about the properties of economic systems in their entirety.

Suggested Citation

  • Paul Lewis & Richard E. Wagner, 2017. "New Austrian macro theory: A call for inquiry," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 1-18, March.
    • Handle: RePEc:kap:revaec:v:30:y:2017:i:1:d:10.1007_s11138-016-0353-0
    DOI: 10.1007/s11138-016-0353-0
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    Cited by:

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    2. Stephen G. Zimmer, 2023. "Rethinking the role of human Capital in Growth Models," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(4), pages 567-588, December.

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    More about this item

    Keywords

    Structure of production; Dispersed knowledge; Equilibrium vs. non-equilibrium theory; Creative systems theory; Macro-foundations for micro;
    All these keywords.

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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