2. Markets and Prices | Lucas M. Engelhardt

Dr. Engelhardt covers Value and Utility, Price Determination, and Factor Pricing.
Suggested Reading: Murray Rothbard, 'Man, Economy, and State with Power and Market', chap. 2, “Direct Exchange.” For more advanced reading, chap. 3-9. mises.org/libr...
Mises Boot Camp is a six-lecture seminar for those seeking to learn the fundamentals of the Austrian school. Recorded at the Mises Institute in Auburn, Alabama, on 25 July 2015.

[@LogicalRobot]

Very nice lecture. Thank you, Dr. Engelhardt!

[@KatsKettlebellDojo]

Loving these lectures, thank you so much!

I'm craving chocolate during the whole lecture

[@flamingmetroid]

a lot to unpack here

[@allthingsconsdrble]

Pro Tip - try nipping away the word whisker “right” - had to stop listening after three minutes because it was such a distraction.

[@arbuzikomaxxx]

So easy to listen! Thanks!

[@samabunuwara217]

Thanks great one

[@M-rw7gc]

8:20

[@karlmarxthebolshevikrabbi2536]

Could someone in the Mises Institute even once address the Sonnenschein-Mantel-Debreu theorem. That theorem was discovered decades ago. Still, I have never heard any Austrian respond to it. This is extremely important, because the theorem basically debunks the conventional supply and demand analysis and, thus, Austrian economics.

[@ProfEngelhardt]

This is an interesting question. A few thoughts: (1) MI types are generally fairly comfortable with multiple equilibria - which many see as the core issue raised by SMD. In Rothbard's partial equilibrium analysis in Man, Economy, and State, there are several points where Rothbard points out that prices are not precisely determined by supply and demand (largely because Rothbard rejects continuity), but that supply and demand narrow the range of possible prices. (2) SMD relies on conventional general equilibrium analysis, which abstracts from time. Since Austrians see time as integral to the market process, SMD is easy to simply dismiss without much comment. (3) Austrian supply and demand analysis often ignores wealth/income effects, which are a big part of the SMD story. In my mind, this is a weakness of the Austrian approach that we do need to work on - though some Austrians have written some on this, it hasn't been integrated into Austrian econ in a comprehensive way. (4) From an optimality standpoint, SMD equilibria are all Pareto optimal. So, the kinds of claims Austrians make regarding what a market economy does in terms of moving toward a reasonable resource allocation are not brought into question. I would encourage you to write up your thoughts as a paper (either in how SMD acts as a critique of the Austrian approach to supply and demand, or giving an Austrian answer to SMD) and send them to the QJAE or the Austrian Economic Research Conference. It's an interesting discussion that should happen.

[@seanmacdiarmid7693]

Lol! karl marx the bolshevik rabbi, just got bitch slapped and never responded.

[@sirellyn4391]

@@ProfEngelhardt Thank you for explaining this Lucas

[@ProfEngelhardt]

@@jakesanders136 I think it's fair to say that Austrians generally support a "market-based" money, and many see the gold standard as a good example of what market-based money has looked like. Some - Rothbard, arguably Mises, Herbener - advocate for tying the dollar back to gold. Others - Hayek, Sennholz, me - would advocate for currency competition and free entry into money creation. I think nearly all Austrians would say that what we really care about is a market-based money, and we don't really care what it looks like - we just think there's a good reason that it will probably be gold (or some other precious metal). I think it's also fair to say that most Austrians wouldn't expect gold to all end up in a small group's hands. As long as there are multiple gold producers, there will be multiple gold owners, and there's not much reason to believe that gold mines will all consolidate. Even now, the problem isn't who owns fiat money - it's who produces it. I think it's also useful to divide two issues: hyperinflation and business cycles. A gold standard would prevent hyperinflation. However, if we still have fractional reserve banking, then business cycles will persist (at least according to many Austrians). Solving business cycles takes a different set of reforms, and those are a matter of debate. Personally, I side with the 100% reserve bankers, though not all Austrians do. (Steve Horwitz was a significant advocate for fractional reserve free banking from an Austrian perspective.)

[@Some_retard]

Unlistenable because he can't stop saying "right". If you're going to be a public speaker try not having stupid tics

[@beingbetterevolutions]

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