aspiringconstitutionalist
Member
- Joined
- Oct 18, 2007
- Messages
- 2,807
I assume it's either the vertical AS or a sloped AS?
According to the Austrian school, what is the shape of the aggregate supply curve?
- Thread starter aspiringconstitutionalist
- Start date
Acala
Member
- Joined
- Feb 14, 2008
- Messages
- 13,414
I dont know but . . .
I don't know the answer to your question, but there may not be an answer. The Austrians don't engage much in graphical analysis. I understand there to be a couple of reasons for this. Aggregate economic statistics tend to be based on some assumptions that Austrians find unacceptable.
First is the subjective theory of value. Because the Austrians see value as purely subjective and ordinal, they do not believe it can be derived numerically and graphed or otherwise manipulated as a statistic. Aggregate statistics typically rely on a labor theory of value which the Austrians reject.
Second is the artificial compartmentalization of microeconomics and macroeconomics. An AS curve may have such a narrow focus as to be unacceptable to an Austrian. But I don't know.
There may be more reasons. Or less! This is pretty far over my head since I have never had an econ course in my life. The good news is that means I am uncontaminated by Keynsian nonsense. The bad news is that I can't speak their language. Hahahaha!
I don't know the answer to your question, but there may not be an answer. The Austrians don't engage much in graphical analysis. I understand there to be a couple of reasons for this. Aggregate economic statistics tend to be based on some assumptions that Austrians find unacceptable.
First is the subjective theory of value. Because the Austrians see value as purely subjective and ordinal, they do not believe it can be derived numerically and graphed or otherwise manipulated as a statistic. Aggregate statistics typically rely on a labor theory of value which the Austrians reject.
Second is the artificial compartmentalization of microeconomics and macroeconomics. An AS curve may have such a narrow focus as to be unacceptable to an Austrian. But I don't know.
There may be more reasons. Or less! This is pretty far over my head since I have never had an econ course in my life. The good news is that means I am uncontaminated by Keynsian nonsense. The bad news is that I can't speak their language. Hahahaha!
youngbuck
Member
- Joined
- Oct 27, 2007
- Messages
- 5,386
Truth Warrior
Banned
- Joined
- Dec 3, 2007
- Messages
- 18,789
No hablo 'Keynesian'. Ingles por favor. 
Acala
Member
- Joined
- Feb 14, 2008
- Messages
- 13,414
!!
Youngbuck, not knowing what I am talking about has never inhibited me in the least!!
One of the reasons that the Austrian School is neglected is because they don't produce reams of calculations and formulae to try and justify government intervention. Instead, they point out things like the subjectivity of value, marginal utility, the interrelationship of interest and savings rates, the importance of the structure of capital, etc. These facts and relationships, that undermine the legitimacy of most economic calculations, are ignored by the Keynsians and neo-keynsians.
But for those who are interested in Austrian graphical analysis, check out:
http://www.auburn.edu/~garriro/cbm.htm
Youngbuck, not knowing what I am talking about has never inhibited me in the least!!
One of the reasons that the Austrian School is neglected is because they don't produce reams of calculations and formulae to try and justify government intervention. Instead, they point out things like the subjectivity of value, marginal utility, the interrelationship of interest and savings rates, the importance of the structure of capital, etc. These facts and relationships, that undermine the legitimacy of most economic calculations, are ignored by the Keynsians and neo-keynsians.
But for those who are interested in Austrian graphical analysis, check out:
http://www.auburn.edu/~garriro/cbm.htm
Similar threads
