Finance Behind the Veil of Money: An Austrian Theory of Financial Markets By Eduard Braun


From the foreword by Guido Hülsmann:

Steeped in the tradition of the Austrian School, Dr Eduard Braun delivers a sweeping and original essay on the foundations of finance. Relying on sources in three languages, and delving deeply into the history of capital theory, his work sheds new light on a great variety of topics, in particular, on the history of the subsistence-fund theory, on the relation between monetary theory and capital theory, on economics and business accounting, on price theory and interest theory, on financial markets, on business cycle theory, and on economic history.

The author reinterprets the role of money within the theory of finance. He revisits the theory of the purchasing power of money (PPM) and argues that a suitable definition of the PPM relates exclusively to consumer-good prices, not to capital-good prices. Dr Braun argues that the PPM in that sense is the bridge between the theory of money and the classical theory of the subsistence fund. His book shows that this is a fruitful approach and a promising framework for future research in a variety of contemporary fields, such as financial economics, finance, money and banking, and macroeconomics.

Eduard Braun invites us to step back and reflect about the meaning of finance. This is time well spent, as readers of the following pages will discover.

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  • B.K. Marcus

    Finance Behind the Veil of Money: An Austrian Theory of Financial Markets

    Finance Behind the Veil of Money: An Austrian Theory of Financial Markets by Eduard Braun What is it that makes many people think of the financial market as a gambling casino? All the casinos in the world put together could never kick off a longstanding global economic crisis like the one we have been living through since 2008. But even many financial writers seem to have no clear idea what role the financial market plays within the economy. To many, it seems not to produce anything tangible or “real.” That the financial market crashes periodically and causes problems in the real economy — most notably unemployment and a decline in production — makes things even worse. In a monetized economy, the realities are veiled behind the observable flows of money. This book, written in the tradition of the Austrian school of economics, is dedicated to removing that veil. Kick off the discussion! Questions, comments, observations or elaborations? Either reply here or create a new discussion using the tag Library_finance-behind-the-veil-of-money

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