Debunking Economics - the podcast What it means to be Austrian
Dec 10, 2025
Explore the intriguing principles of Austrian economics versus neoclassical theories. Discover how Austrian thought emphasizes entrepreneurial innovation born from disequilibrium. Dive into the critiques of praxeology and the limitations of introspection in economic research. Uncover Schumpeter's insights on credit cycles and the impact of private debt on economic stability. Engage with the debate over money creation, interest rates, and libertarian perspectives. This conversation illuminates the complexities of economic thought and its practical implications.
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Dynamism Comes From Disequilibrium
- Austrian economics emphasizes capitalism's dynamism arising from disequilibrium and entrepreneurial arbitrage opportunities.
- This contrasts with neoclassical focus on equilibrium, which struggles to explain innovation.
Test Ideas, Don't Introspect Them Alone
- Avoid relying solely on introspective reasoning (praxeology) to understand complex economic systems.
- Conduct empirical, inductive research instead of deducing all results from introspection.
Hard Money Versus Bank Credit
- Austrians favour hard money and see fractional-reserve banking as fraudulent and government-enabled.
- Steve Keen rejects that view and argues banks' role in money creation and finance is more complex.
