The Emergence of a Tradition: Essays in Honor of Jesús Huerta de Soto, Volume I: Money and the Market Process

Contents
List of Contributors
List of Figures
List of Tables
Jesús Huerta de Soto: A Biographical Sketch
The Origins of Austrian Economics in the Treaties of the Theologians of Salamanca
References
Would a Retail Central Bank Digital Currency Achieve Its Intended Purpose?
Definition, Purposes, and Characteristics of Retail CBDC
Implications for the Conduct of Monetary Policy and the Related Risk Transfer
Does Limiting Risk Transfer Hinder the Achievement of CBDC Purposes?
Conclusion
References
The Disinterventionist Spiral
Mises’ Theory of Interventionism
Two De-interventionist Implications in Mises’ Theory of Interventionism
Reform of the Pension System as an Illustration of a De-interventionist Spiral
Conclusion
References
The Spontaneous Issue of Lancashire Bills of Exchange as Money
Early Banking in Manchester
How the Lancashire Industrialist Understood Money
What Happened in Manchester? Why Did These Lancashire Bills Decline?
What Lessons Can Be Learned Concerning the Manchester Bill Period?
References
Jesús Huerta de Soto as Scholar, Teacher, and Academic Entrepreneur: A View from the US
References
Rehabilitation of the Bankrupt Firm: Property Rights and Entrepreneurship
Property Rights in a Bankruptcy Procedure
Firms Without Entrepreneurs?
References
The Place of Money, Bank Credit, and Economic Cycles, in the Austrian Tradition of Economic Treatises
A Common Philosophical Background
A Systematic Development and Exposition of Economic Principles Which, in Many Instances, Took Place in the Form of Economic Treatises
The Use of Natural Language and the Deductive Method
The Idea That Economics Should Explain Real Economic Phenomena with Relevance to Real People
The Importance Granted to Institutional, Legal, and Historical Analysis
A Critical Analysis of Other Economic Theories
A Conscious Effort Toward the Creation and Maintenance of a School of Thought
Conclusion
References
Human Behavior and Austrian Economics
A Potential Overlap of Behavioral and Austrian Economics
Limitations to Human Decision-Making
The Influence of Emotions
Combining Behavioral and Austrian Economics
Parallels? Or Contradictions?
Conclusion
References
The Austrian Theory of Consumption Period Planning: Some Neglected Contributions from the Interwar Period
Carl Menger and Periods of Planning
Hans Mayer and Consumption Period Planning Guided by “The Law of the Periodic Recurrence of Wants”
Paul N. Rosenstein-Rodan and Planning for “The Economic Period” Under Uncertainty
Oskar Morgenstern and Multi-consumption Period Planning with Expectations
The “End” to the Austrian School in Vienna
Hans Mayer’s “Betrayal” of the Austrian School
References
History and Economic Theorizing
Introduction
Economics and History
A Vision as a Link
Economics as a Science of Meaning
Hints for a New Synthesis
Conclusion
References
Beyond Public Choice
The Public Choice School and Austrian School: A Reflection on the Existing Relationship Between the Two Schools
Jesús Huerta de Soto: Beyond Public Choice
Conclusion
References
The Austrian Defense of the Euro in Light of Luigi Einaudi’s Quest for Sound Money
Einaudi, the Austrians, and the Quest for Sound Money
European Federalism and the Centrality of the Common European Currency
Was Einaudi’s Plan Too Good to Be True? Huerta de Soto’s Forgotten Alternative
References
Economic-Societal Order and Business Order: Efficient Configuration of the Business “Environment”
The Interdependence of the Economic and the Societal Orders
The Social Dimension, in the Economic Order and in the Economic Processes
Conceptualization of Coordination Processes
The Societal Economic Order and Business Dynamics
Proposals for a Society Economically and Societally Efficient: Business Dynamics
References
Defining Money
Money in a World of Finance
Uncertainty, the Root of All Money
Conclusion
References
Investment Under the Theoretical Framework of the Austrian School of Economics
Sensible Investing
Principles
Entrepreneurship and Dynamic Efficiency
Uncertainty, Diversification, and Marginal Utility
The Current Investment Environment
References
Financial Markets and the Production of Law
Felicitous Cross-Fertilization
The Production of Financial Claims
The Natural Production of Financial Claims
Fiat Finance
Fiat Finance Within a Fiat-Money System
Financial Markets and Statutory Law Making
Conclusion
References
The Capital Asset Pricing Model: Dead and Kicking
What Is the CAPM?
CAPM Assumptions
The Empirical Critique of the CAPM
The Theoretical Critique of CAPM
Alternatives to the CAPM
The Factors’ Zoo
Forward-Looking Alternatives
Conclusions: The CAPM Condrum
References
A Brief Note on Bank Circulation Credit and Time Preference
Time Preference and the Originary Interest Rate
Bank Circulation Credit Expansion and Time Preference
Revaluation of All Values
A Case Against Fiat Money
References
Dynamic Efficiency, Economic Development, and the Ethics of Property
Sources of Prosperity
Economic Progress as a Process of Dynamic Efficiency
The Importance of Institutions
Ethics and Economic Prosperity
Personal Ethics and Prosperity
Conclusion
References
Puviani on Smith on Taxes
Puviani and the Illusione Finanziaria
Puviani on Smith on Taxes
Puviani’s Socialism
Conclusion
References
Milton Friedman’s Views on Method and Money Reconsidered in Light of the Housing Bubble
The Nature and Sources of Friedman’s Method
From Mitchellian Method to Monetarist Theory
Friedman’s Monetary Theory and Its Critics
Prelude: Milton Friedman on Monetary Policy 1981–2001
Milton Friedman on Monetary Policy 2002–2006
Conclusion
References
Hayek’s Overinvestment Theory and the Stability of the Euro Area
Reasons for the European Financial and Debt Crisis
The Flawed Institutional Framework of the EMU
Overinvestment and Crisis in the Euro Area
Negative Side Effects of Monetary Crisis Management
Zombification and Low Growth
Redistribution Effects and Redistribution Conflicts
The Erosion of Trust
High Inflation Perceptions and Erosion of Trust in the ECB
Political Polarization
Outlook
References
The Two Gresham’s Laws: Parallel Currencies in a Small Country
A Different Monetary Rule
Gresham’s Laws
Fixed and Flexible Exchange Rates
Two Monies in Peru: One Legal Tender, the Other de facto
Telephone Money in Kenya
“Gresham” Dynamic Equilibrium of Two Legal Tender Currencies
Conclusion
References
Dynamic Efficiency in the Process of Desocialization
Dynamic Efficiency as a Guiding Principle of Desocialization
More Efficiency, More Justice, More Morality
References
The Greatest Economist Who Ever Lived
How I Use Menger in My Classes
Example #1: Real Wages vs Goods/Services
Example #2: Why Prices Are Determined at the Margin
Example #3: Using Tobacco to Demonstrate the Theory of Imputation
Introducing a More Complete Macroeconomic Model
Menger Provides the Missing Link Between Micro and Macro
Four-Stage Macro Model of the Economy
Seeking a Complete Macroeconomic Model
Kuznet’s Fatal Mistake in National Income Accounting
Conclusion
References
The Entrepreneur and Entrepreneurship: A Practical Framework for Firm Analysis
The Entrepreneur
The Entrepreneurial Function and the Analytical Model
Implications of the Proposed Model
The Entrepreneurial Function and the Family Business
Conclusion
References
Well Rooted Lessons, Odd Offshoots, and the Realization that the Fruit Has Not Fallen Far from the Tree
References
Index