Newly Discovered Gold Does Not Distort the Economy; It Is Not A Market Failure

Block Walter E. () and Barnett William ()
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Block Walter E.: Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics Loyola University New Orleans, The Unites States of America
Barnett William: Dr. John V. Connor Professorship in Economics and Finance and Professor of Economics, Loyola University New Orleans, TheUnited States of America

Review of Economic Perspectives, 2020, vol. 20, issue 3, 281-288

Abstract: We wish to “quibble” with Murphy (2019). We mean this literally. That is, we are in strong and enthusiastic agreement with virtually everything he writes therein, except for one point: we think him guilty of allowing the cloven hoof of market failure into the Austrian tent. Our purpose in the present essay is to banish market failure from praxeological premises. To wit, he maintains that pure market processes such as a gold discovery can “distort” prices and interest rates, and we argue to the contrary.

Keywords: distortion; interest rates; market failure; prices (search for similar items in EconPapers)
JEL-codes: B53 E32 E42 E58 G21 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:20:y:2020:i:3:p:281-288:n:2

DOI: 10.2478/revecp-2020-0014

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