Playing at Markets: A New Austrian Perspective on Macroeconomic Policy

19 Pages Posted: 9 Jun 2015 Last revised: 15 Mar 2017

See all articles by Alexander William Salter

Alexander William Salter

Texas Tech University - Rawls College of Business; American Institute for Economic Research

Date Written: June 8, 2015

Abstract

The New Austrian (also called Neo-Mengerian) paradigm emphasizes the importance of nonequilibrium and emergent processes in explaining the social world. In this paper I analyze macroeconomic policy from a New Austrian perspective. I define macroeconomic policy broadly, encompassing not only policy relating to business cycles and growth, but to any policy aimed at directly manipulating emergent variables. Such policy is fundamentally incoherent, since it attempts to divorce social outcomes from the processes that generate them and give them meaning. A New Austrian approach to macroeconomic policy, which focuses on the rules structuring nonequilibrium-emergent social processes, avoids this problem.

Keywords: Catallaxy, emergence, institutions, Menger, New Austrian, praxeology

JEL Classification: B4, B53, E02, E60

Suggested Citation

Salter, Alexander William, Playing at Markets: A New Austrian Perspective on Macroeconomic Policy (June 8, 2015). Review of Austrian Economics, Vol. 30, No. 1, 2017. Available at SSRN: https://ssrn.com/abstract=2615910 or http://dx.doi.org/10.2139/ssrn.2615910

Alexander William Salter (Contact Author)

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States

HOME PAGE: http://awsalter.com

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

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