Austrian Public School
Introduction
The Austrian school has its beginnings in the book "Principle of Political Economy" written by Carl Menger. Which encouraged to “consistently apply the praxeology method for theoretical research in economics;In addition to establishing a causal connection between the underlying subjective values in consumer decisions and the objective prices used in entrepreneurs’ calculations ”.
The main exponents of Austrian school also included their criticisms of inflation. One of his representatives Friedrich Hayek faces the central governments as those promoters of the increase in inflation. So, it proposes that the policies established within a regime that has the possibility of the creation and distribution of their own currency, can harm the country’s economy so that it is not stable.
Now, but as a consequence of having the necessary resources due to the issuance of its Monera, they are the main cause for the capital destined to carry out works in favor of citizens. However, from the Austrian perspective "the economic cycles of boom and recession are the result of credit expansion processes executed by a fractional reserve banking system".
However, the Austrian school characterized by very marked ideals from its origins has very contrary ideas exponents by the exponents of the neoclassical school. This occurs because following the guideline of the economic thought of the Austrians, the money found in the banks does not have to be used under any circumstances by the bankers. Since this would trigger a decline in the economy.
However, neoclassical ideas consider that if bankers have the need to access these funds they can do so. This is reflected "in which they support the Peel law that reduced cash coefficients so that bankers have almost all bank deposits". Likewise, it is possible to establish that the contribution made by this economic thought, favors that each society can create a solid base in which it can develop in an adequate way.
Developing
One of the theories presented by Austrian school is the dominant theory, in which it is prioritized that the income generated from an economic activity is the most profitable possible. Thus establishing that those entrepreneurs with new ideas which have developed their sagacity should be taken into consideration when it comes to establishing business relations so that in this way solutions can be found to those problems that arise in a day -to -day basis.
But not only innovative businesses are given, the product of the insight of the new entrepreneur, but they are also given by the entrepreneurs who are in the market and who want to develop other initiatives, which only occurs with the recognition of who has knowledge and knowledge andinformation. In other words, individuals with a vision of entrepreneurship need their own autonomy to be able to comply with each of the proposals raised and thus be an active entity in the economic progress of humanity.
Instruments
This economic thought has as a principle the idea that the events that occur within a given society are effects of the different decisions taken by the members of the same. Considering this thought, different authors consider that the use of mathematical sciences within the study of the economy is not the best;since, the best way for the economy to work has to be with facts already proven which are with solid bases in which a society can sustain.
“To this method, developed by Ludwig von Mises in human action, it is called praxeology. They also reject the division between macroeconomics and microeconomics, since they consider that the second must explain the first ”.
Design
Austrian economists considered that the field of specific prediction is business and does not correspond to the scientist of the economy that, at most, can only carry out "predictions" of qualitative or theoretical type referring to the effects of the effects of economic intervention in any ofHis facets, but without economists being able to carry out as scientists of the economy predictions applicable to certain time and place coordinates.
Results
The Austrian Active School active that has as one of its objectives the promotion of the development of society. However, currently many countries in the region are suffering great falls in their economy. This is because they have followed a wrong economic model, which has caused its decline to be increasing. An example of this is the Venezuelan economy.
According to the Austrian school, the economic crisis in Venezuela is a consequence of an economic model based on central planning. The uncontrolled monetary emission by the Central Bank generates an inflationary process that is aggravated with the price controls on consumer goods and the dollar. The dollarization of the economy would allow inflation to be revealed, but many liberalization reforms are necessary to overcome the current crisis.
Discussion
The different authors belonging to the Austrian school, present very interesting ideas in relation to various cases of interest, which contribute to human development. Thus, in this school they prioritize entrepreneurs who are characterized by being innovative, with the unique distinctive of solving problems that arise within society.
However, in addition to having clear ideals in relation to the subject of vital importance. The Austrian school is critical of the ways in which the neoclassical school tries to justify that bank deposits can be used for the interests of bankers. Since this according to the representatives of the Austrian school could trigger a series of collapses in the economy. In which their depositors would be very affected.
conclusion
In conclusion, the Austrian School establishes that the failure within a society is based on the facts related to the policies developed and taken to each within each region. This is based that the efforts taught in the economic field are carried out from past events so that a precedent can be.
Similarly, in this school they defend and support entrepreneurs, since they take them as unequivocal references of development. Likewise, they strongly criticize the ideas presented by the neoclassical school, since they consider that an economic collapse can occur. It also raises the importance that governments have when producing an economy with optimal performance.
References
Alonso, m., Bagus, p., & Ania, to. (2013).
Cabrera, r. (2018). Of entrepreneurship from the Austrian School of Economics.
Charry, g. P. (2010). Business and company.
Throw, m., Martínez, m., and Zambrano, or. (2018).
Garcia, s. (2015). The dynamics of the businessman in society.
Jadan, k., Morán, e., And Piguave, L. (2019). Austrian school policies.
Llopart, j. (2012). Neoclassical school, values and rights.
Martínez, o. (2020). Inflation in the perspective of Austrian school.
Pineapple, e. (2005). Sustainable development: contributions from the Austrian School of Economics.
Corner, i., Torres, r., And Medina, P. (2014). Economic epistemology
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