Friday, October 4, 2019

Person who made substantial contributes to or signifcantly employed Essay

Person who made substantial contributes to or signifcantly employed economic principles - Essay Example Mises’ relentless accounts of economic phenomena all led to a singular conclusion—a recurring theme throughout his greatest treatises that â€Å"the only viable economic policy for the human race was a policy of unrestricted laissez-faire†¦ with government strictly limited to the defense of person and property within its territorial area† (Rothbard). In the face of growing tides of statism and collectivism running through economic philosophies of his contemporaries in the first quarter of the 20th century, Mises remained resolute in his insistence upon a free, uninhibited marketplace. But aside from his heterodox views, Mises made significant contributions to economics as a universal discipline, among which are the three (a monetary theory of the trade cycle, a priori epistemology, and the impossibility of rational economic calculation in a socialist economy) to be discussed here. The first of these contributions was, of course, his monetary theory of the trade cycle. By this theory, introduced in The Theory of Money and Credit, he states that â€Å"whatever constitutes money in a market must originally have derived its value from a non-monetary use† (North, 2001). This theory is a so-called â€Å"regression theory† in the sense that it makes a statement about the beginnings of money’s use in society. Mises’ theory of money formed the basis of F. A. Hayek’s 1974 Nobel Prize, â€Å"awarded for†¦ pioneering work in the theory of money and economic fluctuations and for†¦ penetrating analysis of the interdependence of economic, social and institutional phenomena† (Machlup, 2003, p. xv). A piece of this Misean theory of money is the observation that money is not pursued for its own sake, but rather in pursuance of purchasing other goods, and business cycles are the inevitable result of unbacked expansions of cred it. Because, as the theory goes, money is not an

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