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Ludwig von Mises


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Ludwig von Mises was an Austrian economist and philosopher, student of Carl Menger and Eugen Bohm-Bawerk, and mentor of F. A. von Hayek (1974 Nobel prize) and Murray Rothbard (father of libertarianism). His main contributions to economic theory are: the refutation of socialism on the grounds of impossibility of rational calculation in absence of private property and prices; refutation of government intervention as incompatible with market economy, leading either to socialism or back to free market; Austrian theory of the business cycle - the main culprit behind business cycle being the central bank and fiduciary money issued by it , which distort the interest rates and market prices for factors of production; praxeology - a science of human action, which economics is a part of - basing the science of economics not on mathematical models departed from reality, but on deduction from simple self-evident axioms like “Humans act”, and building economic theory logical brick after brick.

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