A Viennese Waltz Down Wall Street: Austrian Economics for Investors

by Mark Skousen

The central message of the Austrian school of economics, writes Mark Skousen in this wide-ranging book, is that economics is about human beings. That outlook has direct implications for financial markets and personal investing. And this is why the Austrian school has had a huge impact Wall Street. A Viennese Waltz Down Wall Street, then, is a tutorial on both economics and investment that sheds new light on both fields. Consider the opening metaphor of the dance. This is the image that Skousen uses to illustrate the direction of prices in financial markets. It is not random but neither is it entirely scripted. There is a great deal of improvisation and uncertainty. But what makes it all work is that great institution of the mutual benefit of buying and selling. This is what makes markets dance. Economics and investing are the two fields that Skousen has followed closely during his long career. This book weaves the two together to show how you can use good economics to anticipate market turns. But just as importantly, it shows how you can use investing knowledge to understand economics. This is the unique contribution of the book. It takes big ideas in economic theory and illustrates them through real-world examples from financial experience. This approach has the merit of really driving home the point. What is the use of subjective value theory, marginal utility, business cycle theory, and the rest? Skousen presents applications at every step, even while covering the history of ideas. He also assesses the records of modern Austrian economists on forecasting. Is it perfect? No, but it is better than most. He has some corrections, too, for "hard money" investment theory. In most economics texts, micro and macroeconomics are distinct. But in Skousen's book, they are beautifully integrated in theory and practice.

Genres: Economics, Finance

256 pages, Paperback

First published January 1, 2012

About the author

I am a professional economist, financial adviser, university professor, author and producer of FreedomFest, the largest annual gathering of free minds about liberty and freedom in the world. I edit the award-winning financial newsletter, Forecasts & Strategies (www.markskousen.com), and have authored many books on economics, finance, investing and Benjamin Franklin. I have been married to my wife Jo Ann for 35 years, and we have 5 children and 3 terrific grandsons.

Reviews

[FiulinhoXD]

Bardzo ciekawa książka porównująca austriacką teorię ekonomii oraz chicagowską. Opisująca jak teoria austriacka pomogła przewidzieć jej zwolennikom, wiele kryzysów finansowych. Dla osób, które nie znają austriackiej teorii ekonomiczniej wręcz obowiązkowa.

[Marcin Boruchowski]

The book shows basic principles of Austrian Economic School and highlights operations on the martlet and how it behaves. Great book for people that want to start studying economics

[Gregory]

Lektura na jeden wieczór. Zgrabne przedstawienie wolnorynkowej myśli ekonomicznej i jej głównych przedstawicieli ze szkoły austriackiej. Bardzo miło się czytało, ale mimo wszystko lektura tylko dla koneserów. Dużej praktycznej wartości w tej pozycji nie dostrzegam, być może dlatego, że było to dla mnie tylko powtórzenie już znanych twierdzeń. Jeśli komuś obce są idee Austriaków i interesuje się ekonomią, to na pewno warto poczytać.

[Jakub Brudny]

Spełnia swoje zadanie, choć zdaje się że poglądy szkoły austriackiej nieco się tutaj rozmyły w kontekście. Zabrakło syntetycznych momentów, takich jak tabele, albo wypunktowanie niektórych rzeczy. Plus za bezstronne prezentowanie poglądów wykluczających się dzięki czemu można poznać różne perspektywy na ekonomię.

[Piotr]

Fun book to read. Nice review of Austrian economists and overview of changes in monetary policies.

[Mark Skousen]

This is a book I've long been excited to write, and I'm very pleased with how it has turned out. The principles of the school of Austrian economics, led by the likes of Hayek and Mises, explains much about the ins and outs of investing on Wall Street, and will undoubtedly help many an investor become more savvy and knowledgeable about investing decisions. AEIOU, MAS

[Jorge Braguez]

Ok, but seems to have simply put together some old material. Was hoping for more thorough application of Austrian economics to investment

[Mateusz Zań]

To ludzie i czynnik ludzki, w szczególności rządowy kreuje skuteczność przedsiębiorczości.