The concepts of "Uncertainty" for Austrians and Post-Keynesians.

What is behind the debate?

Keywords: Uncertainty, Austrian School, Post-Keynesians, O’Driscoll Jr. e Rizzo, Davidson

Abstract

Distinct in several respects, the Austrian School and the Post-Keynesians consider the idea of "uncertainty" to be fundamental. This work is based on an Austrian perspective to explain to what extent the Post Keynesian approach fails to understand the idea of "uncertainty", with emphasis on the formulation of governmental policies. In particular, the paper addresses an attempt at "reconciliation" between the two schools by Gerald O'Driscoll Jr. and Mario Rizzo, which generated a debate between several Austrian economists and Paul Davidson, a post-Keynesian author. As a cause and solution to the controversy, the great influence on the authors of Economics of Time and Ignorance, namely the contentious nature of Ludwig Lachmann's theory in relation to the Austrian School itself will be highlighted, considering the uncertainty as a fact that makes impractible the observation of an effective coordination among the actions of dispersed agents.

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Published
2018-11-26
How to Cite
Andrade III, P. (2018). The concepts of "Uncertainty" for Austrians and Post-Keynesians. MISES: Interdisciplinary Journal of Philosophy, Law and Economics, 6(3). https://doi.org/10.30800/mises.2018.v6.865
Section
Original Research Articles