Savings, Private Property and Sound Money
An Austrian Perspective on the Essential Pre-requisites to Economic Growth and Development
The overarching goal of this paper is to provide an answer to the following question from the perspective of economists working within the Mengerian or Austrian tradition: What are the essential pre-requisites and pre-conditions for a process of economic growth and development to take place? In course of our discussion, we focus on three important pre-requisites. First, we look at the implications of the presence of time preference, especially for the importance that savings have for adopting longer and more productive production processes and boosting productivity. Second, we analyze the problem of economic calculation and isolate the important institutional pre-conditions that are necessary for the allocation of higher order goods: private property in higher order goods and the use of money. These institutional pre-conditions, as we discuss, are thus also essential for the process of economic growth. And finally, we discuss the importance of a sound monetary order for generating sustainable economic growth.
BOETTKE, P. J. Calculation and Coordination: Essays on Socialism and Transitional Political Economy. Norwell: Kluwer Academic Publishers, 2001.
BOETTKE, P. J. The Political Economy of Soviet Socialism: The Formative Years, 1918-1928. New York: Routledge, 2010.
BÖHM-BAWERK, E. V. The Positive Theory of Capital. South Holland: Libertarian Press, 1959.
COYNE, C. J. Doing Bad by Doing Good: Why Humanitarian Action Fails. Stanford: Stanford University Press, 2013.
EASTERLY, W. The Elusive Quest for Growth. Cambridge: MIT Press, 2001.
EASTERLY, W. The White Man’s Burden. New York: Oxford University Press, 2006.
EASTERLY, W. The Tyranny of Experts. New York: Basic Books, 2014.
GARRISON, R. W. Time and Money: The Macroeconomics of Capital Structure. London: Routledge, 2001.
HAYEK, F. A. The “Paradox” of Saving. Prices and Production and Other Works. Auburn: Ludwig von Mises Institute, 2008a.
HAYEK, F. A. Prices and Production. Prices and Production and Other Works. Auburn: Ludwig von Mises Institute, 2008b.
HÜLSMANN, J. G. The Ethics of Money Production. Auburn: Ludwig von Mises Institute, 2008.
HUTT, W.H. The Strike Threat System. New York: Arlington House, 1973.
HUTT, W.H. A Rehabilitation of Say’s Law. Athens: Ohio University Press, 1974.
HUTT, W.H. The Theory of Idle Resources: A Study in Definition. Indianapolis: Liberty Fund, 1977.
HUTT, W.H. The Theory of Collective Bargaining. Washington DC: Cato Institute, 1980.
LANDES, D.S. The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor. New York: W.W. Norton and Company Inc, 1998.
MANISH, G. P. Central Economic Planning and India’s Economic Performance, 1951–65. Independent Review, v. 16, n.2, p. 199–219, 2011.
MANISH, G. P. Market Reforms in India and the Quality of Economic Growth. Independent Review, v. 18, n.2, p. 241–262, 2013.
MENGER, C. Principles of Economics. Auburn: Ludwig von Mises Institute, 2007.
MISES, L. V. The Theory of Money and Credit. New Haven: Yale University Press, 1953.
MISES, L. V. Socialism: An Economic and Sociological Analysis. New Haven: Yale University Press, 1962.
MISES, L. V. Economic Calculation in the Socialist Commonwealth. Auburn: Ludwig von Mises Institute, 1990.
MISES, L. V. Human Action: A Treatise on Economics. Auburn: Ludwig von Mises Institute, 1998.
NUTTER, W. G. Growth of Industrial Production in the Soviet Union. Princeton: Princeton University Press, 1962.
ROTHBARD, M. N. Man, Economy and State. Auburn: Ludwig von Mises Institute, 2009a.
ROTHBARD, M. N. Power and Market. Auburn: Ludwig von Mises Institute, 2009b.
SHENOY, B. R. Indian Planning and Economic Development. Mumbai: Asia Publishing House, 1963.
SHENOY, B. R. Fifteen Years of Indian Planning. Mumbai: Forum of Free Enterprise, 1966.
SHENOY, B. R. India: Progress or Poverty? London: Institute of Economic Affairs, 1971.
SHENOY, B. R. Investment Chains through History or An Historian’s Outline of Development. Indian Journal of Economics and Business, special issue, p. 185-215, 2007.
SHENOY, B. R. Towards a Theoretical Framework for British and International Economic History: Early Modern England. Auburn: Ludwig von Mises Institute, 2010.
WHITE, L. H. Competition and Currency: Essays on Free Banking and Money. New York: New York University Press, 1992.
This work is licensed under a Creative Commons Attribution 4.0 International License.
This Journal is licensed under a Creative Commons Attribution 4.0 International License.