10 episodes

Joseph T. Salerno and Peter G. Klein are two of the most productive micro-economists in the Austrian School today. This seminar provides an introduction to Austrian Economics. Presented at the Mises Institute, 11-15 June 2007.Download the complete audio of this event (ZIP) here.

Fundamentals of Economic Analysis: A Causal-Realist Approach Mises Institute

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Joseph T. Salerno and Peter G. Klein are two of the most productive micro-economists in the Austrian School today. This seminar provides an introduction to Austrian Economics. Presented at the Mises Institute, 11-15 June 2007.Download the complete audio of this event (ZIP) here.

    1. Scarcity, Choice, and Value

    1. Scarcity, Choice, and Value

    The causal-realist approach began with Menger who based all of his observations upon reality that was intimately tied to the price system. Humans ceaselessly seek to remove unease. They consciously use means to attain their ends. Scarcity implies desirability and limitation.

    2. Exchange and Demand

    2. Exchange and Demand

    All action is really exchange. What the actor prefers less is exchanged for something he prefers more, including gift giving. It is a fallacy to say that the goods exchanged have equal value.

    3. The Determination of Prices

    3. The Determination of Prices

    What determines market prices? Buyers and sellers must know of feasible trades. They can learn from their mistakes. They prefer higher profits to lower profits. They think in discreet terms. Both participants win in market exchanges.

    4. Price Controls: Case Studies

    4. Price Controls: Case Studies

    As with all government intervention, price controls do not achieve what their originators think they will. Trying to maintain a supply of milk by putting a price control on it will cause shortages, which are the very situations the price manipulators said they wanted to avoid.

    5. Pricing of the Factors of Production and the Labor Market

    5. Pricing of the Factors of Production and the Labor Market

    Factors of Production are economic goods: scarce means used to achieve an individual’s ends. They are land, labor and capital. Each is examined. Incomes are earned by factor owners as production takes place. There is no separated production and distribution.

    6. Profit, Loss and the Entrepreneur

    6. Profit, Loss and the Entrepreneur

    Causal-realist analysis allows imaginary constructs like the ERE- Evenly Rotating Economy- in order to isolate certain factors like interest.  There would be no profit or loss in the ERE, because those can only exist under conditions of uncertainty.

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