Testing Times for Central Banks: Is There Room for Austrian Economics at the Top Table?

Originally published in Economic Affairs

Central banks are facing an unprecedented test in the wake of the credit crisis. We briefly outline prevailing theoretical frameworks and argue that central bankers effectively have a choice between three separate frameworks: Vienna, Cambridge and Chicago.

Central banks are facing an unprecedented test in the wake of the credit crisis. We briefly outline prevailing theoretical frameworks and argue that central bankers effectively have a choice between three separate frameworks: Vienna, Cambridge and Chicago. Despite Austrian economics being the least acknowledged we survey increasing exposure in mainstream media, suggesting a role for a more explicit use. We provide implications for policy-makers and claim that Austrian ideas have a place at the top table of policy debate.

Find article at Wiley Online Library

To speak with a scholar or learn more on this topic, visit our contact page.

Mercatus AI Assistant
Ask questions about this research.
GPT Logo
Mercatus AI Research Assistant
Ask questions about this research. Mercatus Chatbot AI More Details
Suggested Prompts:
Ask us anything. We use OpenAI's ChatGPT 4o base model to answer any question about Mercatus research.