Austrian Economists and the Gold Standard

B: Ahhh Austrians, predicting 29 of the last 1 cases of mass inflation. Congrats! you were right this time!

C: I thought the exact same thing the first time I saw this. All the "Austrians" have to do is predict hyper-inflation in perpetuity, and eventually they will get it "right." It doesn't matter that Ron Paul has been predicting hyperinflation since, like, 1861, though, because "every Austrian" saw this coming for MILES. 🤣

A: To be clear, Ron Paul is not an economist of any kind, and his economic outlook and “end the fed,” gold bug insanity is not compatible with Austrian economics.

Me: Gold and Austrian School of Economics - More than Just Gold Standard | Sunshine Profits

"Austrian economists advocate the gold standard"

A: no they don’t. Austrian School - Wikipedia

Me: "Economists of the Austrian School are supporters of the gold standard"

Paper published in a peer reviewed journal

In Defense of the Euro: An Austrian Perspective (With a Critique of the Errors of the ECB and the Interventionism of Brussels)

Austrian School of Economics   - Economics Help

"Support Gold Standard as way to prevent inflation"

The Gold Standard: Perspectives in the Austrian School | Mises Institute

The contributors to this notable anthology argue for one particular sort of reform, a return to the gold standard. They write from the perspective of the Austrian School."

"The Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think tank located in Auburn, Alabama, United States. It is named after Austrian School economist Ludwig von Mises."

Ironically, the Wikipedia article you linked literally says

" According to Ludwig von Mises, central banks enable the commercial banks to fund loans at artificially low interest rates, thereby inducing an unsustainable expansion of bank credit and impeding any subsequent contraction and argued for a gold standard to constrain growth in fiduciary media."

A: LvMI is a Paulbot and gold bug organization, which has done more to discredit and marginalize Austrian economics than any other factor. Mises himself, however, was not a gold bug. He argued that money should be durable, divisible, and portable, and that gold arose as currency for that reason.

But gold is not as durable, divisible, or portable as fiat currency, and the supply constraints make it inherently deflationary, and impractical to use as money.

You should read The Theory of Money and Credit.

It is excellent, and everything from LvMI is trash.

Me: Sure. But you still need to find some way to dismiss the other 2 sources.

A: sure, read anything from an Austrian economist.

Me: Lol

"The classical or orthodox gold standard alone is a truly effective check on the power of the government to inflate the currency. Without such a check all other constitutional safeguards can be rendered vain"

- the theory of money and credit / Ludwig von mises

A: Because he was writing in the 1930’s…