Chapter Ǻ: Macroeconomics and Coordination ȀȄȂNew Keynesianism. (We should not be afraid of mere labels, which have
been especially misapplied in recent years anyway.)
Rising Austrian economists might well find dissertation topics in
the areas of monetary history, monetary reform, alternative market insti-
tutions,Ȇ property rights, and institutional and entrepreneurial history.
A search for historical episodes of depression or recession of entirely
nonmonetary origin and character could be instructive, whether or not
any actually turn up.
Going beyond preservation and transmission of cherished truths, Aus-
trians can exploit their insights to help gain new knowledge and sounder
public policy. Macroeconomics as recommended here may offer govern-
ments unfashionably little specific advice, little numerically definite, lit-
tle beyond warning against monetary disorder and against otherwise con-
tributing to uncertainty and fear. But if that is the way things are, what
else can one say?
Austrians can also point out the absurdity of our undefined fiat dollar,
whose value rests precariously on nothing better than the changeable poli-
cies of the Federal Reserve, badgered from all sides with contradictory,
changeable, and short-run-oriented advice. Ļey have much to say about
how this monetary anomaly abets irresponsible government, reflected in
persistent budget deficits. It is unnecessary to identify sound money exclu-
sively with a particular commodity standard of relatively brief historical
duration. As F.A. Hayek and several younger Austrian economists have
shown, several alternative monetary reforms are of theoretical and practi-
cal interest.
ŞőŒőŞőŚŏőş
Brown, Harry G. “Nonsense and Sense in Dealing with the Depression.”BGS
International Exchange(SpringȀȈȂȂ):ȈȆ–ȀǿȆ.
Clower, Robert W.Money and Markets. Edited by Donald Walker. New York:
Cambridge University Press,ȀȈȇȃ.
. “Keynes’s General Ļeory: A Contemporary Perspective.”Greek Eco-
nomic ReviewȀȁ, Supplement (AutumnȀȈȈǿ):ȆȂ–ȇȃ.
ȆPeter Howitt recommends studying how real-world institutions function very differ-
ently from the centralized Walrasian auction (ȀȈȈǿ, p.ȄȀ). “Further progress will depend
upon supplying institutional detail ... , including the inventory-holding, advertising, nego-
tiating, inspection, and even price-quoting services of intermediaries and other market-
making institutions of real life” (ȀȈȈǿ, p.ȀȈ).