Modern Macroeconomics and the Austrian School

The ideas of Austrian economic school are becoming more popular. However when you look at the current debates in macroeconomics (especially the academic ones) you will barely find any place for Austrian school ideas. Although most of today academic macroeconomics can be thought of as Keynesian (Greg Mankiw thinks that the old debate between freshwater and saltwater macroeconomics is dead), and although many old ideas have been successfully used recently (like Pigou’s theory of business cycle), there hardly is any place for Austrian ideas.

Read more