The Methodology Of Modern Austrian School And Its Significance For Economics Analysis

As a free and important school, the Austrian school of economics experienced the same development process as other schools did: creation, query, and the peak. The school also experienced setbacks, but did not make it die out. Although "not bright", The Austrian School has not left the academic field of vision, and it is still the non-mainstream school. It retains the basic principles of Austrian methodology and analysis. This shows that it still has its own unique and reasonable theory. Many of the school's own theories are not substitute, although it is not the mainstream school. Modern Austrian economics supposed the unique macroeconomic theory with the features of capital structure, whose root cause is the early ground capital theory. The theory uses international capital structure of the live production of non-equilibrium to explain the business cycle and volatility. This is opposed to the mainstream school of economics.The first chapter introduces that the Austrian school of economics and foreign scholars did a lot of research, especially the foreign scholars of the Austrian school of economics. The elaboration of Mises and Austrian school of Professor Wang Dingding is the most important. Deng Zhenglai the "Hayek's social theory, " Yao Zhongqiu the "methodology and its system of meaning ", and Wang Jun, "Modern Austrian School of Economics," all refer to the method of Austrian economics and analysis of unique views. Foreign scholars did research on Hayek, Mises, and Rahman. The studies are unique. In recent years, research focus is that the latest Austrian Economics Nobel Laureate Hayek North and Smith tried to change the cognitive ideology and system link.The second chapter introduces that if counting from the founder of Menger, Austrian has experienced the formation and development through the whole seven generations and a half century. During this period, the Austrian school of economics and mainstream economics has gone through the integration, separation, a brief boom, and a long-term cold. It also ushered in a major recovery in life. Overall, this contributed to the third generation and fourth generation of Austrian economists, the Austrian economist Ludwig von Mises Hayek's perseverance and hard work, and the fifth, sixth and seventh generation to the saving of the new Austrian School of economists and development of the traditional theory. The fifth generation of Austrian economists, the conference's chief spokesman, described the basic principles and methods of modern Austrian school of economics. It challenged the neoclassical orthodoxy of the rule of Keynesian economic science. The meeting also discussed the important issue of the Austrian School and the future direction of development. The conference paper under the title "the foundation of modern Austrian economics" is considered to be a new Declaration of the Austrian School.Chapter three introduces that in the eyes of some economists, Austrian economics is only the neo-classical economics which hates math and advocates free market economy. But in fact, in that aspect of how economists look at the world and how they discharge their duties and other issues - which is mainly reflected in the economic epistemology and methodology of science - the former presented a fundamental challenge to the latter. Austrian economics introduces the economics of different objects and methods, different from the neoclassical economics. In order to reveal the real cause behind the economic relationship, it rejected the neo-classical economic variables outlined in the functional relationship, and replaced it with a purpose of human actions described in a dynamic world. As Vaughan noted, "from the most basic sense, Austrian economics made a new interpretation of content, approach and limitations of the contemporary economics; from the most profound sense, it is revolutionary reconstruction to the Economics."Chapter four states that the modern Austrian School is one of the schools which rose from 1970's and 1980's, in the countries of America and England. The representatives are Mises and Hayek. The core idea is to focus on market competition act and process, which is different from the market structure of Harvard School and of the market performance of Chicago School. In the past 20 years, the genre had a huge influence in the Western academia and politics. Many of the industrial policy and Austrian anti-trust regulations are based on the new schools of thought. In the 1930's, Mises and Hayek inherited some of the traditional theory of the Austrian school and made a few additions. They opposed Marxism, and also opposed the idea of Keynesian national economic regulation. They supported liberalism and self-worship market forces, and opposed the socialist planned economy. The criticism of mainstream economics from Austrian economics is reasonable. There are many positive opinions. Austrian economics is still significant in some reasonable kernel, and their views cannot be replaced by mainstream schools.