Synthesis of The Yeager and Austrian Theory
Monetary disequilibrium theory has always been a part of the Austrian Monetary theory.Significant features of the monetary-disequilibrium theory except the inclusion of the stable price level have been present in the Austrian theory for a long time now. Mostly modern Austrian economists emphasize on the effects of inflation than the harm caused by rapid deflation. This is mainly because inflation is a more immediate problem in the current system and deflation is a result of prior inflation. Over the last few years preventing deflation by inflating the money supply has quite worked out and thus it would be better if we limit the monetary expansion on the first place.
Leland Yeager's theory of monetary disequilibrium is simpler than the Austrian School of thought but it leaves out important parts of the economic system and hence provides an incomplete view of the business cycles. Austrian theory being simple is the only theory that places business cycles in the full context of a functioning economy.
Read more about this topic: Monetary-disequilibrium Theory
Famous quotes containing the words synthesis of the, synthesis of, synthesis, austrian and/or theory:
“It is in this impossibility of attaining to a synthesis of the inner life and the outward that the inferiority of the biographer to the novelist lies. The biographer quite clearly sees Peel, say, seated on his bench while his opponents overwhelm him with perhaps undeserved censure. He sees him motionless, miserable, his head bent on his breast. He asks himself: “What is he thinking?” and he knows nothing.”
—Andre Maurois (1885–1967)
“Our art is the finest, the noblest, the most suggestive, for it is the synthesis of all the arts. Sculpture, painting, literature, elocution, architecture, and music are its natural tools. But while it needs all of those artistic manifestations in order to be its whole self, it asks of its priest or priestess one indispensable virtue: “faith.””
—Sarah Bernhardt (1845–1923)
“The spider-mind acquires a faculty of memory, and, with it, a singular skill of analysis and synthesis, taking apart and putting together in different relations the meshes of its trap. Man had in the beginning no power of analysis or synthesis approaching that of the spider, or even of the honey-bee; but he had acute sensibility to the higher forces.”
—Henry Brooks Adams (1838–1918)
“An Austrian army, awfully array’d,
Boldly by battery besiege Belgrade;
Cossack commanders cannonading come,
Deal devastation’s dire destructive doom;”
—Alaric Alexander Watts (1797–1864)
“Could Shakespeare give a theory of Shakespeare?”
—Ralph Waldo Emerson (1803–1882)