Abstract

Austrian school economists have long been interested in monetary and financial operations that characterize modern capitalism. With a few exceptions, this interest was confined, at least until the late twentieth century, primarily to the aggregate effects of these operations on the workings of the economy at large, focusing on the overall outcomes of human action rather than specifics of how the decision to engage in those actions comes about. In other words, Austrian theorists emphasized the role of business enterprise but not the conduct of business. The last thirty years of development in the Austrian school have seen a profound change in this regard, with notable contributions emerging in all areas of business education. This chapter demonstrates the development of Austrian theory with respect to finance and makes the case that this development is sufficient in scope to qualify as a distinctive Austrian theory of finance.