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Ludwig Lachmann is a central but underappreciated figure within the Austrian school of economics. Although his understanding of institutions, his appreciation of the heterogeneity of capital, his emphasis on subjectivity, and his focus on the dynamism and uncertainty of the real world have become dominant positions amongst Austrian economists, he is still viewed as something of an outsider. As such, the contributions of Lachmann's economics are arguably misunderstood. This Element attempts to tease out and discuss the critical contributions of Lachmann's economics. Arguably, one way in which to understand Lachmann's economics is by seeing it as unified in considering, in various ways, a single conceptual 'problem' - the apparent tension between the dynamic nature of social reality and the intelligible nature of the social world. Approaching Lachmann with this theme in mind allows us to put things together more coherently than other exegetical strategies.
List of contents
1. Introduction; 2. Radical subjectivism, the consequences of active minds and the problem of Kaledic nihilism; 3. Markets as adjustment processes for reconciling plans, the challenge of plan adjustment outside a market and the role of institutions; 4. The similarities and differences between Lachmann and Kirzner on equilibrium; 5. The self-similar structure of social systems, the notion of orientation, the centrality of the plan, and the theory of institutions (again); 6. Lachmann's Enduring Influence; References.
Summary
This Element attempts to tease out and discuss the critical contributions of Lachmann's economics. One way in which to understand Lachmann's economics is by seeing it as unified in considering a single conceptual problem. This theme allows us to put things together more coherently than other strategies.
Foreword
Ludwig Lachmann is a key figure in modern Austrian economics. His contributions, however, are poorly understood.
