New Austrian Macro Theory: A Call for Inquiry

41 Pages Posted: 8 Jul 2016

See all articles by Paul A. Lewis

Paul A. Lewis

King's College London

Richard E. Wagner

George Mason University - Department of Economics; George Mason University - Mercatus Center

Date Written: July 7, 2016

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.

Keywords: structure of production; dispersed knowledge; equilibrium vs. non-equilibrium theory; creative systems theory; macro-foundations for micro

JEL Classification: B53, D80, E02, E14, E42

Suggested Citation

Lewis, Paul Andrew and Wagner, Richard E., New Austrian Macro Theory: A Call for Inquiry (July 7, 2016). Review of Austrian Economics, Forthcoming, GMU Working Paper in Economics No. 16-26, Available at SSRN: https://ssrn.com/abstract=2805904

Paul Andrew Lewis (Contact Author)

King's College London ( email )

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+44 0 20 7848 3970 (Fax)

HOME PAGE: http://www.kcl.ac.uk/sspp/departments/politicaleconomy/people/academic/lewis.aspx

Richard E. Wagner

George Mason University - Department of Economics ( email )

4400 University Drive
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Fairfax, VA 22030
United States
(703) 993-1132 (Phone)

HOME PAGE: http://mason.gmu.edu/~rwagner/

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://ppe.mercatus.org/scholars/richard-wagner

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