What can Austrian and post-Keynesian monetary economists learn from each other?
What can Austrian and post-Keynesian monetary economists learn from each other?

Summary/Abstract: The two prominent heterodox schools of economics are the Austrian and post-Keynesian schools. For this reason, they are sometimes analyzed together. This article continues this tradition, focusing on monetary economics. Both schools share certain features, especially an emphasis on the non-neutrality of money. The aim of this article is to compare Austrian and post-Keynesian monetary economics to determine whether both schools would benefit from an intensified intellectual exchange. The author shows that although the non-neutrality of money plays a crucial role for both schools, they have interpreted this concept differently. The differences between the Austrians and the post-Keynesians are significant, but there is some potential to learn from each other. The author argues that the Austrian school could reject the money multiplier model and look more favorably on the idea of endogenous money, while the post-Keynesians could enrich Minsky's financial-instability hypothesis with the insights of the Austrian business cycle theory.

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