The Austrian school as a field of study in economics – truths and myths

Abstract

The article is concerned with studying of the Austrian school of economics, comparison of approaches of different representatives of the school to the analysis of basic economic phenomena and processes, determining differences between scientists' views and their research methods. The importance of the ideas of Austrian economists for modern economic theory in the context of interaction between the state and the market is emphasized. The purpose of the article is to study the theoretical concepts of the Austrian school in the context of the search for new theoretical approaches to solve modern economic problems. The methods of comparative studies and the problem-personified approach to the study of the history of economic ideas are used. A comparison of the main ideas of the representatives of the Austrian school is carried out in historical and logical sequence. The results of the study give a description of the main theses of Carl Menger, Friedrich von Hayek, Ludwig von Mises and their scientific followers. The nature of prices and subjective valuation as well as price stabilization policy are revealed in the paper according to Austrian tradition. Attention is paid to the subjective approach, namely subjective information and costs. It is emphasized that entrepreneurship is a major force and Austrian believe that an entrepreneur's profit comes from the assumption of simple identification of risk with error. Today, the Austrian approach is of particular relevance, according to which it is impossible to scientifically know what will happen tomorrow, since it depends mainly on knowledge and information that has not yet been created in the entrepreneurial process. The results of research are important for understanding the need to revival of interest in this strand of economics, which for decades had been treated marginally in textbooks of economic thought. Austrian theoretical approaches should be used to analyze the processes of modern economic development and solve complex multifaceted economic problems.