Austrian School of Economics  

The Austrian school of economics is a broad range of economic thought generally critical of state socialism and supporters of laissez faire capitalism.

Austrian School of Economics

1. Criticise Marxist analysis of Economic distribution. Austrian economists have argued that laissez faire capitalism offers the most efficient method for distributing resources.

2. Methodological individualism. Austrian economists have placed the individual at the centre of their economic models. It is argued that it is not easy to provide general models assuming certain behaviour.

3. Methodoligical subjectivism. Austrian economics has been noted for its decision to eskew formal economic models and place importance on deducing models from people’s individual behaviour.

4. Support for Monopoly. Many austrian economists have argued that monopolies are beneficial. Firms who gain monopoly power show efficiency and success and therefore should not be discouraged. This contradicts neoclassical theory which tends to view monopolies as bad. It has implications for antirust law

5. Recessions Caused by Credit Cycles.

6. Support Gold Standard as way to prevent inflation

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