Austrian Economics, Money and Finance

Business & Finance, Finance & Investing, Banks & Banking, Economics, Economic History, Finance
Cover of the book Austrian Economics, Money and Finance by Thomas Mayer, Taylor and Francis
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Thomas Mayer ISBN: 9781351685528
Publisher: Taylor and Francis Publication: November 10, 2017
Imprint: Routledge Language: English
Author: Thomas Mayer
ISBN: 9781351685528
Publisher: Taylor and Francis
Publication: November 10, 2017
Imprint: Routledge
Language: English

The financial crisis has exposed severe shortcomings in mainstream monetary economics and modern finance. It is surprising that these shortcomings have not led to a wider debate about the need to overhaul these theories. Instead, mainstream economists have closed ranks to defend existing theories and public authorities have expanded their interference in markets.

This book investigates the problems associated with mainstream monetary economics and finance, and proposes alternatives based on the Austrian school of economics. This school emanated from the work of the nineteenth-century Austrian economist Carl Menger and was developed further by Eugen von Böhm-Bawerk, Ludwig von Mises, and Friedrich August von Hayek. In monetary economics, the Austrian school regards the creation of money by banks through credit extension as a key source of economic instability. From this follows the need for a comprehensive reform of our present monetary system. In a new monetary order, money could be issued by both public and private institutions, and there would be no need for fractional reserve banking. Instead of creating money, banks would intermediate it.

In finance, the Austrian school rejects the notion of rational expectations and measurable risk. Individuals use their subjective knowledge to gather and evaluate information, and they act in a world of radical uncertainty. Hence, markets are not "efficient" nor can portfolios be built on the basis of known probability distributions of asset prices as described in the modern finance literature.

This book explores the need for a new theoretical foundation for asset pricing and investment management that will give practitioners more useful orientation.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

The financial crisis has exposed severe shortcomings in mainstream monetary economics and modern finance. It is surprising that these shortcomings have not led to a wider debate about the need to overhaul these theories. Instead, mainstream economists have closed ranks to defend existing theories and public authorities have expanded their interference in markets.

This book investigates the problems associated with mainstream monetary economics and finance, and proposes alternatives based on the Austrian school of economics. This school emanated from the work of the nineteenth-century Austrian economist Carl Menger and was developed further by Eugen von Böhm-Bawerk, Ludwig von Mises, and Friedrich August von Hayek. In monetary economics, the Austrian school regards the creation of money by banks through credit extension as a key source of economic instability. From this follows the need for a comprehensive reform of our present monetary system. In a new monetary order, money could be issued by both public and private institutions, and there would be no need for fractional reserve banking. Instead of creating money, banks would intermediate it.

In finance, the Austrian school rejects the notion of rational expectations and measurable risk. Individuals use their subjective knowledge to gather and evaluate information, and they act in a world of radical uncertainty. Hence, markets are not "efficient" nor can portfolios be built on the basis of known probability distributions of asset prices as described in the modern finance literature.

This book explores the need for a new theoretical foundation for asset pricing and investment management that will give practitioners more useful orientation.

More books from Taylor and Francis

Cover of the book A Dictionary of Human Rights by Thomas Mayer
Cover of the book Urban and Regional Policies for Metropolitan Livability by Thomas Mayer
Cover of the book Fitting into Place? by Thomas Mayer
Cover of the book Cities, State and Globalisation by Thomas Mayer
Cover of the book Global Modernity by Thomas Mayer
Cover of the book Electronics and Instrumentation for Audiologists by Thomas Mayer
Cover of the book Literacy, Play and Globalization by Thomas Mayer
Cover of the book Higher Education Revolutions in the Gulf by Thomas Mayer
Cover of the book Teaching Literacy through Drama by Thomas Mayer
Cover of the book From Physick to Pharmacology by Thomas Mayer
Cover of the book Elites and Identities in Post-Soviet Space by Thomas Mayer
Cover of the book ASEAN's Diplomatic and Security Culture by Thomas Mayer
Cover of the book Work Behavior of the World's Poor: Theory, Evidence and Policy by Thomas Mayer
Cover of the book The Illusions Of Post-Feminism by Thomas Mayer
Cover of the book Taxing Culture by Thomas Mayer
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy