6 fundamental concepts often associated with the Austrian school

1. Methodological individualism: The focus is on individual human actions & decision-making as the basis for economic analysis. Austrians emphasize that economic phenomena can only be understood by analyzing individual human behavior.
2. Subjective value: Austrians emphasize that value is subjective & varies among individuals. This contrasts with the classical economists' labor theory of value, which states that the value of a good is determined by the amount of labor required to produce it.
3. Spontaneous order & the market process: Austrians emphasize the role of the market as a spontaneous order, which emerges without central planning or control. They argue that the market is a dynamic process driven by the constant interplay of individual actions, resulting in the coordination of resources & allocation of goods & services.
4. Time preference & interest rates: Austrians emphasize the role of time preference in determining interest rates & the allocation of resources over time. They argue that interest rates are a reflection of individuals' time preferences for consumption in the present versus the future.
5. Business cycle theory: Austrians offer an alternative explanation for business cycles, emphasizing the role of credit expansion & central banks' monetary policies. They argue that artificially low interest rates lead to unsustainable investment booms, followed by busts & economic downturns.
6. Entrepreneurship & market coordination: Austrians highlight the crucial role of entrepreneurs in recognizing & acting upon profit opportunities in the market. They argue that entrepreneurship is the driving force behind market coordination & economic growth.