Microfoundations and Macroeconomics: 20 Years

Abstract

This paper summarizes Horwitz's contributions in Micro-foundations and Macroeconomics: An Austrian Perspective and evaluates its connection with recent contributions in Austrian macroeconomics. The paper emphasizes the connection between relative price, monetary equilibrium, and monetary policy. The paper pays particular attention to the implications of Horwitz’s denomination of capital theory as a “missing link” in economic theory.

Keywords: Micro-foundations, Capital Theory, Monetary Equilibrium

JEL Classification: B53, E14, E30, E50