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Taktické omyly ekonomů rakouské školy při "dobývání ortodoxie"
[Austrians´ Tactical Mistakes that Prevent Them to "Conquer the Orthodoxy"]

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  • Lukáš Kovanda

Abstract

According to quite a number of scholars, even non-Austrian, some theories of Austrian school of economic thought do provide an increasingly relevant material to explain recent boom-and-bust economic cycles as well as financial crises. However, I argue, this development is not adequately reflected by a corresponding growth of Austrian influence within the economic orthodoxy. Quite to the contrary, many orthodox scholars have taken over rigidly Keynesian positions since the financial crisis culminated in 2008 and 2009. In my article I maintain that Austrians themselves have contributed significantly to such a situation by not preventing three major tactical mistakes, related to the domain of sociology of economics, from occurring. Firstly, they have not formed a really unified and thus influential group of scholars; instead, they have been divided into a few streams, sometimes with highly contradictory stances. Secondly, many Austrians have made bold predictions, especially with regard to possible enormous inflation stemming from the unprecedented provision of liquidity to the financial system during and in the aftermath of the financial crisis of 2008 and 2009, which have not been fulfilled at all. Thirdly, a critical number of Austrian school's economists do not effectively communicate with the rest of the profession and even, it seems, fail to adequately comprehend the orthodox analytical tools and theories.

Suggested Citation

  • Lukáš Kovanda, 2013. "Taktické omyly ekonomů rakouské školy při "dobývání ortodoxie" [Austrians´ Tactical Mistakes that Prevent Them to "Conquer the Orthodoxy"]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(3), pages 411-427.
    • Handle: RePEc:prg:jnlpol:v:2013:y:2013:i:3:id:905:p:411-427
    DOI: 10.18267/j.polek.905
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    References listed on IDEAS

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    1. Tony Lawson, 2006. "The nature of heterodox economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(4), pages 483-505, July.
    2. Ohanian, Lee E., 2009. "What - or who - started the great depression?," Journal of Economic Theory, Elsevier, vol. 144(6), pages 2310-2335, November.
    3. Luigi L. Pasinetti, 2005. "The Cambridge School of Keynesian Economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(6), pages 837-848, November.
    4. William R. White, 2006. "Is price stability enough?," BIS Working Papers 205, Bank for International Settlements.
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    1. Lukáš Kovanda, 2014. "Will the Financial Crisis Become a Milestone in the Development of Methodology of Economics? [Stane se finanční krize milníkem v metodologii ekonomie?]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2014(4), pages 16-29.

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    More about this item

    Keywords

    financial crisis; Austrian school; heterodoxy; orthodoxy; sociology of economics;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian

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