Category Archives: Austrian School of Economics

Austrian School of Economics

Carl Menger, Zeitungsbeiträge von 1918 und 1921

Zeitungsbeiträge aus Wien. Rechts: Interview mit Carl Menger (1981). Links: Nachruf von Josef Schumpeter zum Tod Carl Mengers im Februar 1921.
Zeitungsbeiträge aus Wien. Rechts: Interview mit Carl Menger (1981). Links: Nachruf von Josef Schumpeter zum Tod Carl Mengers im Februar 1921.

Die folgenden zwei Beiträge wurden durch Federico Salazar (Mises-Institut, Peru) im Digitalservice der Österreichischen Nationalbibliothek gefunden.

“Österreich-Ungarische Bank und Valutafragen” |  Gespräch mit Carl Menger, erschienen im Neues 8 Uhr-Blatt, 29. Januar 1918.

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Carl Menger: Österreich-Ungarische Bank und Valutafragen


Prof. Dr. Josef Schumpeter über Carl Menger | Nachruf von Josef Schumpeter, erschienen in Neue Freie Presse, Wien, 28. Februar 1921. Karl Menger verstarb zwei Tage vorher im Alter von 81 Jahren.

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Carl Menger – Nachruf von Josef Schumpeter

Could Digital Currencies Make Hayek’s Denationalization of Money Dream Come True?

by Dr. Emanuele Canegrati (Italy)
Fellow Liechtenstein Academy

Could Digital Currencies Make Hayek’s Denationalization of Money Dream Come True? And can a basket of cryptocurrencies be the new world monetary basis? Perhaps it is too early to answer these questions, as the cryptocurrencies and the blockchain revolution is only at its very beginning and digital moneys such as Bitcoin or Litecoin are still considered by many famous economists and investors only as a big financial bubble ready to burst. But, left aside all the speculation-related issues, that certainly surround the current digital currencies market, one may be brave and answer in a positive way. In his best-seller book “The Denationalization of Money” (1976) Friedrich Hayek expressed his thoughts about the role of currencies, by advocating the establishment of competitively issued private moneys, against the public money issued by central banks. Those central banks that still have the decisional monopoly power on money today.

could digital currencies make hayeks denationalization of money dream come true
Could digital currencies make Hayek’s denationalization of money dream come true?

In 1978 Hayek published also a revised and enlarged edition of the book entitled “Denationalization of Money: The Argument Refined”, where he proposed a monetary system where, rather than entertaining an unmanageable number of currencies, markets would converge on one or only a limited number of monetary standards. According to Hayek’s idea, private business should be given the opportunity to issue their own private currencies, which, thanks to the free market mechanisms, would compete for acceptance. The acceptance of a currency is given by its reaching the stability in value, as competition tends to favor currencies with the greatest stability, since currency devaluation hurts creditors, while a revaluation hurts debtors. Therefore, stability emerges as a “spontaneous order” of the market, rather than through a political decision made by central bankers, through the “monetary policies”, for whatever they mean. Hence, customer-citizens would choose the monies which they expected to offer a mutually acceptable intersection between depreciation and appreciation. Hayek maintained also that institutions may find through experimentation that a basket of commodities forms the ideal monetary base. Institutions would issue and regulate their currency primarily through loan-making, and secondarily through currency buying and selling activities. It is postulated that the financial press would report daily information on whether institutions are managing their currencies within a previously-defined tolerance.

If we analyze now the market of cryptocurrencies, we can easily observe the presence of many elements characterizing the Hayekean monetary world. First of all, private issuing. Digital currencies are completely issued trough a private mechanism, linked to the computerized mining process, which is somehow comparable with the more classic gold mining. And, yes, Bitcoin has often been assimilated to gold. Of course, there is a huge difference between the precious metal and a digital currency, as the first is a metal, with specific features such as brilliance, durability, beauty and preservability over time, which of course a digital currency does not possess. Nevertheless, cryptocurrencies could have a common feature with gold, which makes them candidates for being the base of a monetary system: scaresness. According to Bitcoin creators, the most famous digital currency of the world should be issued in the limited quantity of 21 million. Not a bitcoin more. Once the total quantity would be achieved, the skyrocketing price should stabilize or change according to the demand/supply law. Gold, as well, is limited, although nobody can quantify its precise quantity. We only know that this quantity is finite.

The ability of digital currencies to be used as a medium of exchange, in finite quantities and in a decentralized issuance could make them suitable for being the base of a libertarian monetary system. Of course, they are not perfect monies, as one may argue that they can be stolen by hakers from savers’ digital wallets, their limit may be raised by miners’ decisions and so on. We are just at the very beginning of what could be a monetary revolution. Only time will demonstrate if these new currencies will be adopted as the new world monetary standard or they will disappear as fast as they has been introduced. And, yet, after having seen the disasters committed by central bankers through their “ultra-expansionary” monetary policies (read, print fiat money as much as you can) these new instruments deserve a chance.

Vernon Smith Prize 2017 – Call for Papers!

Vernon Smith Prize 2016 Call for Papers
Does Tolerance become a crime when applied to evil? Vernon Smith Prize 2017.

Call for Papers!

The 10th International Vernon Smith Prize for the Advancement of Austrian Economics is an essay competition sponsored and organized by ECAEF European Center of Austrian Economics Foundation, Vaduz (Principality of Liechtenstein). This years’ topic:


Does Tolerance become a Crime when applied to Evil?


|- First Prize EUR 4,000 -|

|- Second Prize EUR 3,000 -|

|- Third Prize EUR 2,000 -|

Advanced by the ‘ends-independent’ market process, free pluralistic societies developed without a shared hierarchy of particular ends. Once we agree on the rules, we need not agree on the goals as markets enable us to disagree peacefully while we pursue our own way. However, to sustain this kind of ’means- but not ‘ends-connected’ society, we must be willing to tolerate differences with others and we have to recognize that our freedom to achieve our ends comes at the cost of allowing others the same, even if we find those ends distasteful.


Does Tolerance become a Crime when applied to Evil?


ECAEF invites papers on this topic which meet the following requirements:

1: Entries may be submitted by individuals of up to 30 years (in 2017).

2: Entries may not exceed 12 pages; 1.5 spacing; left/right margins no less then 1 inch; full bibliography and a 1/2 page summary (abstract) must be included.

3: Entries must be submitted in English in electronic form (PDF) to krl@ecaef.li and must include an abbreviated CV, featuring DoB, education, and current position.

4: Entries must be received on or before November 11, 2017.

5. It is mandatory that all prize winners participate in the award ceremony in Vaduz Prizes are not transferable and will be awarded on the basis of originality, grasp of subject, and the logical consistence of the argument.

Essays will be judged by an international jury and the winners will be invited to present their papers at a special event in Vaduz, Principality of Liechtenstein, in February, 2018. First Prize €4,000 – Second Prize €3,000 – Third Prize €2,000.

Carl Menger – Revolutionär der Volkswirtschaftslehre

Carl Menger – Revolutionär der Volkswirtschaftslehre | Diese Seminar-Arbeit über Carl Menger wurde im Juni dieses Jahres von Marvin Mueller, Schüler an der Zinzendorfschule Königsfeld (D) vorgelegt. In Anbetracht der Jugend des Autors ist diese als bemerkenswert zu beurteilen. Dass Carl Menger, der mit seiner Theorie des subjektiven Wertes nicht nur die klassische Nationalökonomie, sondern die gesamte Methodologie der Sozialwissenschaften aus den Angeln hob, zum Gegenstand einer Seminararbeit an einem Gymnasium wurde, gibt Anlass zur Hoffnung. Mit freundlicher Genehmigung des Autors veröffentlichen wir sie daher – sozusagen als Ansporn für junge Leser.

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Carl Menger – Revolutionär der Volkswirtschaftslehre 

Mises – Inflation and Legislation

Ludwig von Mises, Rede 1920, Gerichts-Zeitung, Wien, Austria
Ludwig von Mises, Rede 1920, Gerichts-Zeitung, Wien, Austria

by Federico Salazar (Mises Institute, Peru)

Looking for some essays by Ludwig von Mises to be translated into Spanish for the new Mises Institute Peru, I was glad to find an unknown and non inventoried review by Mises of a book written in Polish and also a review by Carl Menger on the teaching of Economics in Germany and Austria. However, one of the most interesting material found was a short paper which Ludwig von Mises delivered in the Viennese Juridical Society on February 3 and March 8, 1920. His lecture was published as “Die Geldentwertung und das Recht” (‘Inflation and Legislation’) in the Gerichts-Zeitung in May 1920. The similarities to the current situation are obvious. You can download this issue of the Gerichts-Zeitung right here as PDF.

The following file contains Mises’ essay “Die Geldentwertung und das Recht”, starting from page 139
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A second file contains Mises’ closing remarks, see page 159
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