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Newly Discovered Gold Does Not Distort the Economy; It Is Not A Market Failure

Author

Listed:
  • Block Walter E.

    (Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics Loyola University New Orleans, The Unites States of America)

  • Barnett William

    (Dr. John V. Connor Professorship in Economics and Finance and Professor of Economics, Loyola University New Orleans, TheUnited States of America)

Abstract

We wish to “quibble” with Murphy (2019). We mean this literally. That is, we are in strong and enthusiastic agreement with virtually everything he writes therein, except for one point: we think him guilty of allowing the cloven hoof of market failure into the Austrian tent. Our purpose in the present essay is to banish market failure from praxeological premises. To wit, he maintains that pure market processes such as a gold discovery can “distort” prices and interest rates, and we argue to the contrary.

Suggested Citation

  • Block Walter E. & Barnett William, 2020. "Newly Discovered Gold Does Not Distort the Economy; It Is Not A Market Failure," Review of Economic Perspectives, Sciendo, vol. 20(3), pages 281-288, September.
    • Handle: RePEc:vrs:reoecp:v:20:y:2020:i:3:p:281-288:n:2
    DOI: 10.2478/revecp-2020-0014
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    References listed on IDEAS

    as
    1. Walter E. Block, 2011. "Rejoinder To Bertrand On Lighthouses," Romanian Economic Business Review, Romanian-American University, vol. 6(3), pages 49-67, September.
    2. Walter Block & William Barnett, 2009. "Coase and Bertrand on lighthouses," Public Choice, Springer, vol. 140(1), pages 1-13, July.
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    More about this item

    Keywords

    distortion; interest rates; market failure; prices;
    All these keywords.

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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