IDEAS home Printed from https://ideas.repec.org/a/kap/revaec/v30y2017i1d10.1007_s11138-016-0353-0.html
   My bibliography  Save this article

New Austrian macro theory: A call for inquiry

Author

Listed:
  • Paul Lewis

    (Kings College London)

  • Richard E. Wagner

    (George Mason University)

Abstract

This essay sketches some contours of what we think can reasonably be called New Austrian macro theory. By New Austrian, macro we mean a style of theorizing that incorporates the core of traditional or Old Austrian macro and pushes that core in new directions by using new analytical tools and methods. We would note that New Austrian is not some invention or construction de novo, but is a product of blending some traditional Austrian insights and formulations with new analytical formulations that were never part of the Austrian tradition but which can multiply the analytical oomph of that tradition. In this essay, we explain that the traditional Austrian macro theory suffers not from analytical wrong-headedness but from an underdevelopment of those complementary pieces of intellectual capital that would render Austrian macro once again a significant player in the efforts of economists to theorize about the properties of economic systems in their entirety.

Suggested Citation

  • Paul Lewis & Richard E. Wagner, 2017. "New Austrian macro theory: A call for inquiry," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 1-18, March.
    • Handle: RePEc:kap:revaec:v:30:y:2017:i:1:d:10.1007_s11138-016-0353-0
    DOI: 10.1007/s11138-016-0353-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11138-016-0353-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11138-016-0353-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Itzhak Gilboa & David Schmeidler, 1995. "Case-Based Decision Theory," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 605-639.
    2. Alan Kirman, 2010. "The Economic Crisis is a Crisis for Economic Theory ," CESifo Economic Studies, CESifo, vol. 56(4), pages 498-535, December.
    3. J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 51(2), pages 209-223.
    4. Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2012. "Rationality of belief or: why savage's axioms are neither necessary nor sufficient for rationality," Post-Print hal-00745599, HAL.
    5. Hayek, F. A., 2014. "The Market and Other Orders," University of Chicago Press Economics Books, University of Chicago Press, number 9780226089553 edited by Caldwell, Bruce, September.
    6. Tony Lawson, 2016. "Editor's choice Social positioning and the nature of money," Cambridge Journal of Economics, Oxford University Press, vol. 40(4), pages 961-996.
    7. Hayek, F. A., 2012. "Hayek on Hayek," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226321202 edited by Kresge, Stephen & Wenar, Leif, September.
    8. Dekker,Erwin, 2019. "The Viennese Students of Civilization," Cambridge Books, Cambridge University Press, number 9781107565661, January.
    9. Paul Lewis, 2014. "Hayek: from economics as equilibrium analysis to economics as social theory," Chapters, in: Roger W. Garrison & Norman Barry (ed.), Elgar Companion to Hayekian Economics, chapter 9, pages 195-223, Edward Elgar Publishing.
    10. Fleetwood, Steve, 1996. "Order without Equilibrium: A Critical Realist Interpretation of Hayek's Notion of Spontaneous Order," Cambridge Journal of Economics, Oxford University Press, vol. 20(6), pages 729-747, November.
    11. Lewis, Paul, 2012. "Emergent properties in the work of Friedrich Hayek," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 368-378.
    12. Pablo Paniagua, 2016. "The robust political economy of central banking and free banking," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(1), pages 15-32, March.
    13. Hayek, F. A., 2010. "Studies on the Abuse and Decline of Reason," University of Chicago Press Economics Books, University of Chicago Press, number 9780226321127 edited by Caldwell, Bruce, Febrero.
    14. Richard E. Wagner, 2016. "Politics as a Peculiar Business," Books, Edward Elgar Publishing, number 16989.
    15. Alan P. Kirman, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-136, Spring.
    16. Tony Lawson, 2012. "Ontology and the study of social reality: emergence, organisation, community, power, social relations, corporations, artefacts and money," Cambridge Journal of Economics, Oxford University Press, vol. 36(2), pages 345-385.
    17. George A. Selgin & Lawrence H. White, 1994. "How Would the Invisible Hand Handle Money?," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1718-1749, December.
    18. Pablo Paniagua, 2016. "The robust political economy of central banking and free banking," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(1), pages 15-32, March.
    19. Vipin P. Veetil & Richard E. Wagner, 2015. "Treating Macro Theory as Systems Theory: How Might it Matter?," Advances in Austrian Economics, in: New Thinking in Austrian Political Economy, volume 19, pages 119-143, Emerald Group Publishing Limited.
    20. Horwitz, Steven, 2011. "Do we need a distinct monetary constitution?," Journal of Economic Behavior & Organization, Elsevier, vol. 80(2), pages 331-338.
    21. Alexander Salter, 2014. "Is there a self-enforcing monetary constitution?," Constitutional Political Economy, Springer, vol. 25(3), pages 280-300, September.
    22. M·rio da GraÁa Moura, 2002. "Metatheory as the key to understanding: Schumpeter after Shionoya," Cambridge Journal of Economics, Oxford University Press, vol. 26(6), pages 805-821, November.
    23. Hayek, F. A., 2010. "Studies on the Abuse and Decline of Reason," University of Chicago Press Economics Books, University of Chicago Press, number 9780226321097 edited by Caldwell, Bruce, September.
    24. Adam Smith & Richard Wagner & Bruce Yandle, 2011. "A theory of entangled political economy, with application to TARP and NRA," Public Choice, Springer, vol. 148(1), pages 45-66, July.
    25. James M. Buchanan, 2010. "The Constitutionalization of Money," Cato Journal, Cato Journal, Cato Institute, vol. 30(2), pages 251-258, Spring.
    26. Paul Lewis, 2015. "Notions of order and process in Hayek: the significance of emergence," Cambridge Journal of Economics, Oxford University Press, vol. 39(4), pages 1167-1190.
    27. Wagner, Richard E., 2012. "A macro economy as an ecology of plans," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 433-444.
    28. Peter J. Boettke & Daniel J. Smith, 2016. "Evolving views on monetary policy in the thought of Hayek, Friedman, and Buchanan," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(4), pages 351-370, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abigail N. Devereaux & Richard E. Wagner, 2020. "Contrasting Visions for Macroeconomic Theory: DSGE and OEE," The American Economist, Sage Publications, vol. 65(1), pages 28-50, March.
    2. Stephen G. Zimmer, 2023. "Rethinking the role of human Capital in Growth Models," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(4), pages 567-588, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter J. Boettke & Alexander W. Salter & Daniel J. Smith, 2018. "Money as meta-rule: Buchanan’s constitutional economics as a foundation for monetary stability," Public Choice, Springer, vol. 176(3), pages 529-555, September.
    2. Paul Lewis, 2017. "The Ostroms and Hayek as Theorists of Complex Adaptive Systems: Commonality and Complementarity," Advances in Austrian Economics, in: The Austrian and Bloomington Schools of Political Economy, volume 22, pages 35-66, Emerald Group Publishing Limited.
    3. Cachanosky, Nicolás & Salter, Alexander W. & Savanti, Ignacio, 2022. "Can dollarization constrain a populist leader? The case of Rafael Correa in Ecuador," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 430-442.
    4. Bryan P. Cutsinger, 2021. "Forced savings and political malinvestment: an application of steve horwitz’s microfoundations and macroeconomics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 34(2), pages 311-322, June.
    5. Van Den Hauwe, Ludwig, 2017. "Monetary Constitutionalism: Some Recent Developments," MPRA Paper 83052, University Library of Munich, Germany.
    6. Diogo Lourenço & Mário Graça Moura, 2016. "The Economic Problem of a Community: ontological reflections inspired by the Socialist Calculation Debate," FEP Working Papers 572, Universidade do Porto, Faculdade de Economia do Porto.
    7. Hendrickson, Joshua R. & Salter, Alexander W., 2018. "Going beyond monetary constitutions: The congruence of money and finance," The Quarterly Review of Economics and Finance, Elsevier, vol. 69(C), pages 22-28.
    8. Glenn L. Furton & Alexander William Salter, 2017. "Money and the rule of law," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(4), pages 517-532, December.
    9. Vipin P. Veetil & Lawrence H. White, 2017. "Towards a New Austrian Macroeconomics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 19-38, March.
    10. Dold, Malte & Lewis, Paul, 2022. "F.A. Hayek on the political economy of endogenous preferences: An historical overview and contemporary assessment," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 104-119.
    11. Bruce Caldwell & Leonidas Montes, 2015. "Friedrich Hayek and his visits to Chile," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(3), pages 261-309, September.
    12. Salter, Alexander William & Young, Andrew T., 2018. "A theory of self-enforcing monetary constitutions with reference to the Suffolk System, 1825–1858," Journal of Economic Behavior & Organization, Elsevier, vol. 156(C), pages 13-22.
    13. J. Barkley Rosser, 2014. "Natural Selection versus Emergent Self-Organization in Evolutionary Political Economy," Advances in Austrian Economics, in: Entangled Political Economy, volume 18, pages 67-91, Emerald Group Publishing Limited.
    14. Peter J. Boettke & Daniel J. Smith, 2016. "Evolving views on monetary policy in the thought of Hayek, Friedman, and Buchanan," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(4), pages 351-370, December.
    15. Scott Scheall, 2016. "A brief note concerning Hayek’s non-standard conception of knowledge," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(2), pages 205-210, June.
    16. Constantinos Repapis, 2014. "J.M. Keynes, F.A. Hayek and the Common Reader," Economic Thought, World Economics Association, vol. 3(2), pages 1-1, September.
    17. Bruce Caldwell, 2020. "The Road to Serfdom after 75 Years," Journal of Economic Literature, American Economic Association, vol. 58(3), pages 720-748, September.
    18. Mário Graça Moura, 2017. "Schumpeter and the meanings of rationality," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 115-138, January.
    19. Giorgio Fagiolo & Andrea Roventini, 2017. "Macroeconomic Policy in DSGE and Agent-Based Models Redux: New Developments and Challenges Ahead," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 20(1), pages 1-1.
    20. Vanberg, Viktor J., 2021. "Review of “F.A.Hayek and the Epistemology of Politics – The Curious Task of Economics” by Scott Scheall," OSF Preprints gjv7r, Center for Open Science.

    More about this item

    Keywords

    Structure of production; Dispersed knowledge; Equilibrium vs. non-equilibrium theory; Creative systems theory; Macro-foundations for micro;
    All these keywords.

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:revaec:v:30:y:2017:i:1:d:10.1007_s11138-016-0353-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.