I don't really understand economics...

[camberiu]

For those who really want to understand the difference between the main schools of economic thought, Michael Shedlock wrote this funny and easy to read piece. I strongly recommend it, even to you, KarlaBA. Snippet bellow:

http://globaleconomicanalysis.blogspot.com.ar/2012/06/modern-day-economic-fairy-tale-except.html

Modern Day Fairy Tale of 3 Economic Wizards (Except It's True)

Once upon a time (today), in a land not so far away (USA), there lived a trio of economic wizards (economists), whose names shall remain anonymous (Paul Krugman, Greg Mankiw, Ben Bernanke).

A fourth wizard, Murry Rothbard, is no longer among the living but resides in the netherworld.

The above wizards seldom agree with each other because they come from competing schools of wizardry.

Three Schools of Economic Wizardry

Keynesian School of Fiscal Voodoo and Witchcraft
Monetarist School of Monetary Voodoo and Witchcraft
Austrian School of Sound Money, Sound Economic Principles and Common Sense.

 

[KarlaBA]

No one is asking about the details of the crackpot theory you are promoting, so why are you offering it up? If you want to learn about economics, then try a different forum. This forum is called BAExpats - Expat Life. It has nothing to do with economic theories. Take your dogmatism to someplace like:
http://www.nakedcapitalism.com/
http://www.interfluidity.com/
http://www.debtdeflation.com/blogs/

Since you are not paying me, I am not going to spoon feed you education. I am pointing you to some places where you can learn on your own. Ask your questions and push your ideas there. I do respect your curiosity though. Enjoy.

 

[camberiu]

Since you are not paying me, I am not going to spoon feed you education. I am pointing you to some places where you can learn on your own. Ask your questions and push your ideas there.

I only asked you to back up your statement three simple names only:

NAME OF THE MAINSTREAM ECONOMIST PROMOTING AUSTRIAN ECONOMICS:

NAME OF COUNTRY THAT APPLIED AUSTRIAN ECONOMICS:

NAME OF THE UNIVERSITY TEACHING AUSTRIAN ECONOMICS:

I should not take you more than 30 seconds to do this. I am only asking you to back up a previous statement that you made. That is all. Is this an unreasonable request?

 

[KarlaBA]

I only asked you to back up your statement three simple names only:

NAME OF THE MAINSTREAM ECONOMIST PROMOTING AUSTRIAN ECONOMICS:

NAME OF COUNTRY THAT APPLIED AUSTRIAN ECONOMICS:

NAME OF THE UNIVERSITY TEACHING AUSTRIAN ECONOMICS:

I should not take you more than 30 seconds to do this. I am only asking you to back up a previous statement that you made. That is all. Is this an unreasonable request?

1. George Magnus
2. The USA, England, France, Canada. This list goes on. All jettisoned it.
3. New York University

Don't bother to dispute these answers. It will only demonstrate your ignorance if you do. I've given you what you asked for, now please take your search to an appropriate forum.

 

[redrum]

Since you are not paying me, I am not going to spoon feed you education.

you were the one who stated that another person's viewpoints were "nonsense". all you did to back up this claim was to post a link to a paper. when asked to elaborate just a little bit you suddenly bow out of the debate. how convenient for you.

you've made some bold, sweeping statements. all we're asking is for a few sentences on why you feel austrian theory is nonsense, that's all.

 

[redrum]

1. George Magnus
2. The USA, England, France, Canada. This list goes on. All jettisoned it.
3. New York University

Don't bother to dispute these answers. It will only demonstrate your ignorance if you do. I've given you what you asked for, now please take your search to an appropriate forum.

which country is currently, at present, using austrian theory?

also what are your feelings on the federal reserve? should it be abolished? do you believe that it is a private bank controlled by a banking cartel?

 

[camberiu]

Don't bother to dispute these answers. It will only demonstrate your ignorance if you do. I've given you what you asked for, now please take your search to an appropriate forum.

Or you will do what? Light me on fire? Interesting that if I challenge your answers I will be showing my ignorance. And you call me dogmatic?

1. George Magnus

The guy who wrote "Give Karl Marx a Chance?". Hardly.

2. The USA, England, France, Canada. This list goes on. All jettisoned it.

Considering that Austrian theory is vehemently against fractional reserve banking and only accept gold backed currency, I do not recall an age where any of that was applicable at the same time on any of these countries. Applying a few elements of Austrian theory without the whole context does not count.

3. New York University

Yes, I'd say that you are right on this one. However, the teachers themselves are not followers of the Austrian school and they cover the subject more with the purpose of covering more "unorthodox" economic views than really teaching austrian school. Austrian school is tough there more as a "curiosity" than as true economic alternative.

Of course, you do not have to reply if you don't want to. Actually, I do not expect you to, since I suspect you are just a troll.

 

[lamarque]

Well here the people are exagerating quite a lot, is not comming the end of the democracy, and we are still not in recesion, the economy is slowing down but not to get in panic, there are lot of problems but nothing even near to what it was before the crisis of 2001, And remember that Argentina has one of the lowest debt in relation to their PBI in all the world so i think people is exagerating a lot in this. You will be more than fine here don't worry.
It will be probably more expensive do. Sell your dollars in the black market and you will counter that.

 

[sesamosinsal]

Considering that Austrian theory is vehemently against fractional reserve banking and only accept gold backed currency, I do not recall an age where any of that was applicable at the same time on any of these countries. Applying a few elements of Austrian theory without the whole context does not count.

How do adherents to the Austrian School address shortages of currency? If there's a group of five people selling stuff to each other with only 50 pesos in circulation, each, on average will have 10 pesos. If five more people join the group and the money supply stays the same, there will be only 5 pesos on average. Vendors would have to adjust their prices or no one would have the money to buy their products, even though they may have paid more for raw materials before the actual production of their products. People with loans would end up paying more for their debts. Consumers, retirees, savers, etc. would benefit from the increased value of their money over-time. Quite honestly, this stuff sounds like a communist's wet dream... Where am I wrong?

 

[camberiu]

How do adherents to the Austrian School address shortages of currency?

There would not be a "shortage" of currency. Currency is just a medium. Prices would simply move downwards to adjust to the available amount of currency.

In a world of backed currency, deflation is the natural state of things, assuming the supply of goods and services remains constant. As the economy grows and becomes more productive, things should become cheaper, not more expensive.

You can find a more detailed explanation here:

http://goo.gl/gZbn4