Friday, June 12, 2015

David Howden Answers Critics of Austrian Business Cycle Theory

On the Tom Woods Show. Howden responds especially to claims that Mises and Rothbard were inconsistent when claiming that unemployment is do to real wages above the market wage and yet refusing to accept monetary inflation to remedy such situations. He also ably defends Austrian Business Cycle Theory (ABCT)  against claims that the theory depends on irrational expectations.

David Howden is chairman of the department of business and economics at the Madrid campus of St. Louis University. He is academic vice president of Mises Canada, editor of the journal Prices & Markets, and co-editor of The Fed at One Hundred, to which I contributed a chapter.

This episode is also relevant for readers of my book, Foundations of Economics: A Christian View, because I use ABCT to explain recessions in the chapters covering macroeconomic theory and policy.

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