I am an economics professor and have been dissatisfied with the way that economic theory has described the miracle of economic growth the global economy has seen since the beginning of the Industrial Revolution. Growth cannot come without progress, which means new and improved goods and services, and more efficient production methods. Progress is the result of entrepreneurship. The role of entrepreneurship in the creation of economic progress has been underappreciated by economists, which was my motivation for exploring the topic in more detail.
Economists tend to characterize firms as profit maximizers, but the people who manage firms operate in an uncertain environment and the path to profitability is rarely clear.
Firms that suffer losses or go out of business provide evidence on this. Foss and Klein depict those who run firms as entrepreneurs who must use their judgment in the face of uncertainty to direct their firms.
They connect the concepts of management and entrepreneurship more closely than has been done in the past, creating a bridge between the academic literature in economics and management.
Entrepreneurship, long neglected by economists and management scholars, has made a dramatic comeback in the last two decades, not only among academic economists and management scholars, but also among policymakers, educators and practitioners. Likewise, the economic theory of the firm, building on Ronald Coase's (1937) seminal analysis, has become an increasingly important field in economics and management. Despite this resurgence, there is still little connection between the entrepreneurship literature and the literature on the firm, both in academia and in management practice. This book fills this gap by proposing and developing an entrepreneurial theory of the firm that focuses on…
I’m an associate professor of economics at Grove City College, where I love introducing students to the economic point of view. My first book, listed below, pursues the relentless logic of tradeoffs. My second book (co-authored with Art Carden), Mere Economics: Lessons for and from the Ordinary Business of Life, is due out in early 2025. It examines how human beings expand their options through cooperation. For me, internalizing the economic point of view is a lifelong project. I think it will become yours, too, if you try these books!
This is the rare book that is as eye-opening for the novice in economics as it is stimulating for the professional economist. Hazlitt will show you why economics is the golden key to unlocking an endless series of social mysteries.
If you really take his classic 1946 “Lesson” to heart, you can outthink many professional economists who have mistaken mathematical pyrotechnics for economic insight.
With over a million copies sold, Economics in One Lesson is an essential guide to the basics of economic theory. A fundamental influence on modern libertarianism, Hazlitt defends capitalism and the free market from economic myths that persist to this day.
Considered among the leading economic thinkers of the “Austrian School,” which includes Carl Menger, Ludwig von Mises, Friedrich (F.A.) Hayek, and others, Henry Hazlitt (1894-1993), was a libertarian philosopher, an economist, and a journalist. He was the founding vice-president of the Foundation for Economic Education and an early editor of The Freeman magazine, an influential libertarian publication. Hazlitt wrote…
My passion is to prepare clients' investments for the impending debt crisis. That is why I started Pento Portfolio Strategies and created the Inflation/Deflation and Economic Cycle Model. The US faces an entirely new paradigm – due to onerous debt, central banks are forced to either massively monetize the nation's debt or allow a cathartic deflationary depression to reset the economy. Our government is now compelled to seek a condition of perpetual inflation to maintain the illusion of prosperity and solvency. Our central bank is now walking the economy on a tightrope between inflation and deflation. This will require a vastly different and active investment strategy to fit the new dynamic.
Written over a century ago, this is a book for the ages.
I read this book early in my career, and it provided a basis for understanding money that helped form my current economic theories. Mises reveals how money originated in the market and how its value is based on its efficacy as a commodity in exchange.
Mises concisely lays out the case for sound money with no inflation and introduces the beginnings of a full-scale business cycle theory.
"It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments." - from The Theory of Money and Credit
Originally published in 1912, Ludwig von Mises's The Theory of Money and Credit remains today one of economic theory's most influential and controversial treatises. Von Mises's examination into monetary theory changed forever the world of economic thought when he successfully integrated "macroeconomics" into "microeconomics" -previously deemed an impossible task -as well as offering…
My entire career has been spent in finance. From life insurance to central banks, from stock exchanges to post-trade clearing and settlement, this is all I’ve ever done. My college degrees include BSBA in Business/Marketing, MBA in Management, and PhD in Economics. In addition to knowing what a lot of people know about finance, I also worked inside the “black box” of the Federal Reserve System and depository trust and clearing corporations (in 4 cities, on 2 continents). Therefore, I know more about the plumbing of stock market infrastructure than most people who have careers (and education) as long as mine.
At New York University, I attended the Austrian Colloquium every week. I learned more about economics listening to Dr. Kirzner talk for 5 minutes than I did in any 2-hour class. Austrian economics is about human action – not unlike what you’ll find in The Economic Way of Thinking. The US stock market today seems to be drifting further and further away from Kirzner’s definition of a market: “Disequilibrium prices generate direct disappointment of plans… Such disappointment can be expected to alert entrepreneurs to the true temper of the market” and result in price discovery. Market makers and short sellers disrupt this process by altering the appearance of supply and demand for the shares of companies. This reason alone should call into question the stock exchange as a “marketplace.”
In the last hundred years or so, the neo-classical school has come to dominate microeconomic thinking. Economists concerned with competition have taken refuge in increasingly complex models which emphasize the end-state of competitive equilibrium. This paper presents, in non-technical terms, an 'Austrian' view of how a market economy works. The writer of this book follows in the Austrian tradition as he tries to crystallize the theory of entrepreneurial discovery and of its implications for economic understanding and policy.
Jasper Becker is a foreign correspondent who spent decades reporting on China and the Far East. His the author of numerous books including Hungry Ghosts – Mao’s Secret Famine, Rogue Regime – Kim Jong Il and the looming threat of North Korea, City of Heavenly Tranquillity, and most recently Made in China – Wuhan, COVID and the Quest for Biotech Supremacy.
This book written in 1922 by the Austrian economist at the University of Vienna is one of the few truly foundational works in political economy. Mises takes apart the theory of the Marxist moneyless planned economy which Lenin and then Stalin tried to apply to the Soviet Union. Mises lucidly explains why not only that it could never work but would lead to catastrophic and unending shortages, dictatorship, repression, and arbitrary rule enforced by a militarized one-party state. Although Mises had no knowledge of China, it is the best book to read in order to understand what happened in China in the 20th century.
First published in German in 1933 and in English in 1960, Epistemological Problems of Economics presents Ludwig von Mises’s views on the logical and epistemological features of social interpretation as well as his argument that the Austrian theory of value is the core element of a general theory of human behavior that transcends traditional limitations of economic science.
This volume is unique among Mises’s works in that it contains a collection of essays in which he contested the theories of intellectuals he respected such as Carl Menger, Eugen von Böhm-Bawerk, and Max Weber. Mises describes how value theory applies to…
I became a behavioral economist in the 1970s, at the time modern behavioral economics came into existence. Much of my work has focused on the way in which the combination of emotions and deliberative thinking impact the way people make decisions about their economic lives. For over four decades, I have been identifying the fascinating ways in which this two system psychological approach influences the important questions of our day.
Keynes’ book is not just a classic, but to my mind is the finest book in economics written in the first half of the twentieth century. Although I studied the book as an undergraduate student, at the time I failed to appreciate what Keynes wrote about the role psychology played in economic decision making. It was only after becoming a behavioral economist myself, and re-reading the book, did I realize that Keynes was a stellar behavioral economist. Although many professionals learn about Keynes’s ideas from other sources, there is nothing like the original. In this work Keynes speaks to us about how human psychology impacts economic decisions and events. Those who read carefully will see that he writes about psychology, optimism, confidence, and sentiment – terms very much in vogue today among modern behavioral economists.
John Maynard Keynes (1883-1946) is perhaps the foremost economic
thinker of the twentieth century. On economic theory, he ranks with Adam
Smith and Karl Marx; and his impact on how economics was practiced,
from the Great Depression to the 1970s, was unmatched.
The General Theory of Employment, Interest and Money was
first published in 1936. But its ideas had been forming for decades ? as
a student at Cambridge, Keynes had written to a friend of his love for
'Free Trade and free thought'. Keynes's limpid style, concise prose, and
vivid descriptions have helped to keep his ideas alive -…
In high school I became interested in politics and economics. Soon I found the Austrian school and decided to make it my profession. I went to the US to study Austrian economics and later to Spain to study with Prof. Huerta de Soto. Finally, I became a Professor of Economics myself, teaching and writing in the tradition of the Austrian School.
Those who want to understand the origins of business cycles and how to prevent them should read this book.
One of the most pressing, if not the most pressing, problem of our societies today is our monetary and financial system. This book explains why and offers a solution.
I believe that it is the most complete Austrian treatise on money and banking. It is interdisciplinary looking at law and history as well. I have used it as a textbook for years in class and I have translated it into German. Every serious student of money and banking has to have mastered this book.
Can the market fully manage the money and banking sector?
Jesús Huerta de Soto, professor of economics at the Universidad Rey Juan Carlos, Madrid, has made history with this mammoth and exciting treatise that it has and can again, without inflation, without business cycles, and without the economic instability that has characterized the age of government control.
Such a book as this comes along only once every several generations: a complete comprehensive treatise on economic theory. It is sweeping, revolutionary, and devastating--not only the most extended elucidation of Austrian business cycle theory to ever appear in print but also a…
I believe that knowledge is power. Understanding how something works leads to practical applications. In markets, I believe you should develop your own ideas on how to invest rather than being told. After all, how can you profit if you’re doing what everyone else is doing? Markets are efficient enough to give an opportunity to everyone but advantage to no one, unless you do something different than the crowd. My list is designed to give you information to develop investment strategies based on chaos theory, complexity, and fractals. It is not designed to tell you how to invest.
The Austrian School of Economics has been completely non-mathematical. Yet their concepts have direct analogies to complexity theory. Reading this book gives you fundamental economic ideas that tie back to the mathematical foundations of complexity, chaos, and fractals.
When dealing with markets, which are made up of people, after all, I have always found that basing your ideas on behavior rather than pure mathematics is always the way to go. Otherwise, you will not know when the markets have changed, and your ideas may no longer work.
This book also brings us back to the idea of cycles and explains them in an intuitive way. O’Driscoll and Rizzo also write well, so this isn’t a dry academic overview. It is a book that gives you both theory and intuition.
The Economics of Time and Ignorance is one of the seminal works in modern Austrian economics. Its treatment of historical time and of uncertainty helped set the agenda for the remarkable revival of work in the Austrian tradition which has led to an ever wider interest in the once heretical ideas of Austrian economics. It is here reprinted with a substantial new introductory essay, outlining the major developments in the area since its original publication a decade ago.
In high school I became interested in politics and economics. Soon I found the Austrian school and decided to make it my profession. I went to the US to study Austrian economics and later to Spain to study with Prof. Huerta de Soto. Finally, I became a Professor of Economics myself, teaching and writing in the tradition of the Austrian School.
This book contains some of the most important articles written by Jesús Huerta de Soto, one of the leading Austrian economists.
I have come to live in Spain to study with Jesús Huerta de Soto. The quality of each one of these essays is extraordinary. I recommend to everyone interested in Austrian economics to study this book in depth.
Huerta de Soto is one of the leading Austrian economists living. His works are very creative and this book gives an overview of his impressive work on a wide range of subjects.
This book gathers a collection of English language essays by Jesus Huerta de Soto over the past ten years, examining the dynamic processes of social cooperation which characterize the market, with particular emphasis on the role of both entrepreneurship and institutions. The author's multidisciplinary approach to the subject is in keeping with a trend in economic thought established by the Austrian school of economics; a discourse that had witnessed a significant revival over the last thirty years.
Areas covered in this book include an introduction to the theory of dynamic efficiency as an alternative to the standard paretian criteria, an…
I am an economics professor at Victoria University of Wellington. As a previous Secretary of the New Zealand Treasury and Governor of the Reserve Bank of New Zealand, I have had quite a bit of experience watching economists’ ideas succeed and fail in the real world. I have written a number of books about policy economists and their lives in peace and wartime. (And a couple of novels too!)
This is a heavier read taking us through a group history of the Austrian School of Economics from the coffee houses of Imperial Vienna to the modern-day Libertarians. Economists such as Ludwig von Mises, Friedrich Hayek, and Joseph Schumpeter originated ideas that have had a big impact on economics and politics, and have been much debated ever since.
A group history of the Austrian School of Economics, from the coffeehouses of imperial Vienna to the modern-day Tea Party
The Austrian School of Economics-a movement that has had a vast impact on economics, politics, and society, especially among the American right-is poorly understood by supporters and detractors alike. Defining themselves in opposition to the mainstream, economists such as Ludwig von Mises, Friedrich Hayek, and Joseph Schumpeter built the School's international reputation with their work on business cycles and monetary theory. Their focus on individualism-and deep antipathy toward socialism-ultimately won them a devoted audience among the upper echelons of business…
