Who...is ?

An introduction to the New Austrian School of Economics (NASoE)

Prof Carl Menger discovered and formulated subjectivism in economics in the second half of the 19th century. Jevons and Walras did likewise. The Walrasian equilibrium version was adopted in mainstream economics. Subjectivism as Menger described it, was ridiculed as 'Austrian' economics.

Prof. Antal Fekete founded the New Austrian School of Economics in honour of C. Menger. His philosophy was public and clear: he could only approve of disequilibrium economics. He combatted mediocrity that relied on 'equilibria'.

Today, we are grateful that Prof. Fekete shared his insights with the world. Scientific discoveries are not to be kept secret. We disseminate Pure (Austrian) Economics, not for the benefit of politics. YOU get the benefit of all of our ongoing research. Enjoy !

Prof. Carl Menger (1840-1921) was credited for discovering, apart from but simultaneously with Jevons and Walras, subjective marginalism in economic behaviour. He was called the founder of the Austrian School, co-called (by the British) because of their Vienna roots.

His legacy knows a strong tradition in the USA. Prof. Carl Menger stongly opposed equilibrium theories, proving these to be dualistic, positivist and plainly wrong. Neither was Menger a Quantity Theorist. That is why Prof. Antal Fekete proposed a disequilibrium theory of economics.

Economics today have deviated from C. Menger's discovery. To no avail have they come up with useless models and political theories, the consequences of which we all suffer today. Time for a new school. And a decent methodology.

The New Austrian School of Economics (NASoE) is a spontaneous volunteer initiative growing in importance and clout every day. Its message is clear: restore the gold standard by opening the mints and allow world wide bill clearing. Refinance limited government with gold bonds and obligatory sinking fund protection.

Rather than a return to the previous century, this is a call for a return to monetary sanity of the gold standard, which was disingenuously discredited by its adversaries, who typically make a good living from the absence of monetary rectitude.

Carl Menger has lived and died fighting scientific mediocrity, positivism and dualism. It is our mission to continue his work. A return to the gold standard is a taboo subject. Prof. Menger noticed the writing on the wall. Today, the gold standard is taboo. Yet, look at how much 'some polite circles' are reclaiming their share of gold back to their own central banks ! We think the proverbial rooster has crowed. Not a moment too soon.

This axiom, the proposition that humans act with a purpose, fulfills the requirements precisely for a true synthetic a priori proposition. It cannot be denied that this proposition is true, since the denial would have to be categorized as an action and so the truth of the statement literally cannot be undone.

This distinguishes the New Austrian School from all other schools so far. Keynesianism in all its strands (pure, post, new, neo , etc.), neo-Classiscism, Monetarism etc. are dedicated to replicate the search for a needle in a haystack by trying to statisically link cause and effect, such as in natural sciences. In human sciences, people are not objects (euphemistically referred to as "agents" that respond to Benthamite stimuli like pleasure or pain. People act with a purpose. 

Although it sounds a lot easier then trying to discover a cause with statistical probability under conditions of radical uncertainty, it was recognised by Prof. Menger that people always act in complex ways that can be deducted from the processes in which they are involved such as e.g. the pricing process in which there are two prices: the (higher) bid and the (lower) offer.

Purposeful acting people are both competing and co-operating with each other at different levels. Linearity is finished. Quantity theory is for simpletons.

The New Austrian School has the benefit of the work of Prof. Fekete who already developped a disequilibrium model, not only for pricing goods and services at different levels, but also on the level of interest and discount formation. Read our MANIFESTO  for more on the difference with the old Austrian School.

Featured Courses

A selection a fine lectures, courtesy of Prof. Antal Fekete.

Friends of NASoE

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Course participants, professionals and students

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