“Although I realize that Austrian-school economists have themselves been highly critical of monetarism, many of its most fundamental claims are in fact fully consistent with their own understanding of monetary theory. Indeed, back in the 1970s the difference between Austrian and monetarists writings about money seemed trivial compared to the difference between them and the writings of other (broadly "Keynesian") economists. I recall very well how I myself got "deprogrammed" from mainstream thinking about money and inflation by reading Henry Hazlitt's wonderful book, The Inflation Problem, and How to Resolve It. Hazlitt was, of course, a thoroughgoing Misesian. Yet no one who reads his book can fail to note the many crucial similarities between his arguments and those of Milton Friedman concerning the same subject.”

In Defense of Monetarism (2008)

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Although I realize that Austrian-school economists have themselves been highly critical of monetarism, many of its most…" by George Selgin?
George Selgin photo
George Selgin 5
economist 1957

Related quotes

Murray N. Rothbard photo

“The more consistently Austrian School an economist is, the better a writer he will be.”

Murray N. Rothbard (1926–1995) American economist of the Austrian School, libertarian political theorist, and historian

As quoted in "An intellectual Autobiography" by Bryan Kaplan, in I Chose Liberty : Autobiographies of Contemporary Libertarians (2010) edited by Walter Block, p. 75.

Roger Garrison photo

“Except for Marxian theories, nearly all modern theories of the business cycle have essential elements that trace back to Knut Wicksell's turn-of-the-century writings on interest and prices. Austrians, New Classicists, Monetarists, and even Keynesians can legitimately claim a kinship on this basis. Accordingly, the recognition, that both the Austrians and the New Classicists have a Swedish ancestry does not translate into a meaningful claim that the two schools are essentially similar. To the contrary, identifying their particular relationships to Wicksellian ideas, like comparing the two formally similar business-cycle theories themselves, reveals more differences than similarities. … [T]o establish the essential difference between the Austrians and the New Classicists, it needs to be added that the focus of the Austrian theory is on the actual market process that translates the monetary cause into the real phenomena and hence on the institutional setting in which this process plays itself out.The New Classicists deliberately abstract from institutional considerations and specifically deny, on the basis of empirical evidence, that the interest rate plays a significant role in cyclical fluctuations (Lucas 1981, p. 237 151–1). Thus, Wicksell's Interest and Prices is at best only half relevant to EBCT. … Taking the Wicksellian metaphor as their cue, the New Classicists are led away from the pre-eminent Austrian concern about the actual market process that transforms cause into effect and towards the belief that a full specification of the economy's structure, which is possible only in the context of an artificial economy, can shed light on an effect whose nature is fundamentally independent of the cause.”

Roger Garrison (1944) American economist

Pages 98–99.
"New Classical and Old Austrian Economics", 1991

Roger Garrison photo
Henry Hazlitt photo
Roger Garrison photo
Roger Garrison photo
N. Gregory Mankiw photo
Paul Krugman photo
Thomas J. Sargent photo

“For policy, the central fact is that Keynesian policy recommendations have no sounder basis, in a scientific sense, than recommendations of non-Keynesian economists or, for that matter, non-economists.”

Thomas J. Sargent (1943) American economist

Robert Lucas, Jr. and Thomas J. Sargent, "After Keynesian macroeconomics", After the Phillips Curve: Persistence of High Inflation and High Unemployment (1978).

Related topics