The Austrian school prioritizes extremely minimalist or no government intervention in the economy. Free banking, exchange/ownership of property, and movement are all emphasized in the Austrian school. The Chicago school is a bit more restrictionist than the Austrian school, but not by much. They usually have minimalist central banking, regulations on exchange and ownership of property. Other differences tend to be the views on business cycle theories, theories of value, etc. I am an Austrian myself BTW
I think the biggest difference is the ABCT, Austrian Business Cycle Theory. With this theory, the market efficiently allocates capital and sets the interest rate. When imposed central banks fiddle with this interest rate, it causes misallocations of capital in the economy, which causes bubbles that eventually pop.
For example, in ABCT the great depression wasn't caused by the central bank suddenly raising interest rates in a downturn. In fact, the initial great depression wasn't the problem, it was the fix. All through the roaring 20's the central banks printed up and loaned out more money into the economy than there was gold to back it, distorting the interest rates and messing up the capital structure. Eventually all those bubbles popped, and caused a depression (sound familiar?). The solution would have been for the central bank to stop loaning out printed up money, and let the mis allocations of capital clear themselves out of the economy efficiently. Instead, they did a whole bunch of stupid things, like taxes, government programs, tariffs, revaluation of gold, and eventually a war.
I'm an Austrian myself, but most economist intellectuals hate Austrian because it implies that the market can manage the economy more efficiently and competently than the experts (sound familiar too?)
I can't define Chicago school. The Austrian school follows a praxeological method of studying rather than interfering in the economy. They favor free markets and "sound" money. I prefer the Austrians. There are other schools of thought but i can't name them. I'm a lay person.
The Austrian school prioritizes extremely minimalist or no government intervention in the economy. Free banking, exchange/ownership of property, and movement are all emphasized in the Austrian school. The Chicago school is a bit more restrictionist than the Austrian school, but not by much. They usually have minimalist central banking, regulations on exchange and ownership of property. Other differences tend to be the views on business cycle theories, theories of value, etc. I am an Austrian myself BTW
I think the biggest difference is the ABCT, Austrian Business Cycle Theory. With this theory, the market efficiently allocates capital and sets the interest rate. When imposed central banks fiddle with this interest rate, it causes misallocations of capital in the economy, which causes bubbles that eventually pop.
For example, in ABCT the great depression wasn't caused by the central bank suddenly raising interest rates in a downturn. In fact, the initial great depression wasn't the problem, it was the fix. All through the roaring 20's the central banks printed up and loaned out more money into the economy than there was gold to back it, distorting the interest rates and messing up the capital structure. Eventually all those bubbles popped, and caused a depression (sound familiar?). The solution would have been for the central bank to stop loaning out printed up money, and let the mis allocations of capital clear themselves out of the economy efficiently. Instead, they did a whole bunch of stupid things, like taxes, government programs, tariffs, revaluation of gold, and eventually a war.
I'm an Austrian myself, but most economist intellectuals hate Austrian because it implies that the market can manage the economy more efficiently and competently than the experts (sound familiar too?)
I can't define Chicago school. The Austrian school follows a praxeological method of studying rather than interfering in the economy. They favor free markets and "sound" money. I prefer the Austrians. There are other schools of thought but i can't name them. I'm a lay person.