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 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?)