The Bitcoin Standard Podcast 305. Principles of Economics With Juan Ramón Rallo
Dec 23, 2025
Join Juan Ramón Rallo, a Spanish economist steeped in the Austrian tradition, as he explores the dynamic landscape of monetary theory. Rallo critiques macroeconomic frameworks like the Phillips curve and Keynesianism, offering insights on market failures and the nature of value. He eloquently describes money's role, emphasizing Bitcoin as a borderless solution to gold's limitations. Delve into the implications of a Bitcoin standard on debt and interest rates, and consider the impact of government involvement in the cryptocurrency space!
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Human Action And Subjective Value
- Austrian economics analyzes human action as the analytical unit rather than abstract aggregates or statistical measures.
- Value is subjective and ordinal, so economic theory should avoid pretending precise cardinal measurements exist.
Macroeconomics' False Scientific Certainty
- Macro formulas like the Phillips curve failed empirical tests and lack falsifiability compared to natural sciences.
- Pretending macro relationships are precise gives a false sense of scientific certainty, says Juan Ramón Rallo.
Why The Labor Theory Fails
- The Marxist labor theory of value wrongly credits labor as sole value source and ignores capital's productivity contribution.
- Capital and labor often form mutually beneficial arrangements rather than an exploiter-exploited relationship.