作者：Jesús Huerta de Soto
Jesús Huerta de Soto Ballester (Madrid, 1956) is a Spanish economist
of the Austrian School. He is a professor in the Department of Applied
Economics at King Juan Carlos University of Madrid, Spain and a Senior
Fellow at the Ludwig von Mises Institute.
Huerta de Soto received a bachelor’s degree in economics in 1978 and a
PhD in economics in 1992, from Complutense University. His MBA in
actuarial science is from Stanford University, 1985. In 2000 he became
a full professor of Political Economy at Universidad Rey Juan Carlos
Huerta de Soto was Editor of seven volumes of the Spanish language
version of the University of Chicago Press’s The Collected Works of
F.A. Hayek. In that capacity, he was responsible for bibliographies,
footnotes, introductions, and hiring translators. He is a member of
the editorial board of New Perspectives on Political Economy and on
the advisory editorial board of the Journal of Markets and Morality.
Huerta de Soto is a Senior Fellow of the Ludwig von Mises Institute
and is on the editorial board of its Quarterly Journal of Austrian
Economics. He was formerly a Trustee of the Madrid Institute for
Advanced Studies (IMDEA) in social sciences and was a vice-president
and director of the Mont Pelerin Society from 2000 to 2004.
W: I ‘ve got to buy a new car.
Q: What does the woman mean?
A) She purchased a car recently.
B) She knew the car was in the lot.
C) She always forgets to clean her car.
必发365手机版，D) She really needs a new car.
The most/ chief / primary / main / lead
only / unique / prefer / perfect
1）注意表示转折和对比的逻辑词：but，however, nevertheless, while, in
fact, whereas, unexpectedly, unfortunately, yet, except, on the other
hand, compared to, unlike, instead, in contrast to等
2）注意表示因果的逻辑词：as a result, since, due to, because of,
therefore, thus, so
3）注意表示否定的逻辑词：not, no, rarely, seldom, never
4）表让步的逻辑词：despite, in spite of, although, though
all in all / in brief / to conclude / at last / in summary / in short
A) They will feel less pressure to raise employees’ wages.
B) They will feel free to choose the most suitable employees.
C) They will feel inclined to expand their business operations.
D) They will feel more confident in competing with their rivals.
A) It poses a challenge to seniors.
B) It saves both time and money.
C) It is childish and unprofessional.
D) It is cool and convenient.
W: He said he’d never text message. He thinks it’s very childish and
unprofessional to text message.
M: Yeah, I can see what he means. It’s considered pretty informal to
text message someone.
C) It is childish and unprofessional.
D) It is cool and convenient.
A)The visiting economist has given several lectures.
B)The guest lecturer’s opinion is different from Dr. Johnson’s.
C)Dr. Johnson and the guest speaker were schoolmates.
D)Dr. Johnson invited the economist to visit their college.
预读选项— 完整听题— 对答案— 跟读模仿— 裸听— 再次跟读和裸听
time preference 的能力。
A 导致(因-果)：cause、reason、lead to、give rise to、result
如：The increased presures of expanding population have led to the
removal of woody plants so that many cities and tow are surrounded by
large areas completely lacking in trees.
B 由…而来(果-因)：result from、derive from、originate from、initiate
from、stem from、be attributable to
如：“The extreme serioue of desertification results from the vast areas
of land and tremendous numbers of people affected，as well as from
thegreat difficulty of reversing or even slowing the proce.”
D 考虑到：given、considering、in view of、thanks to、according to
He succeeded thanks to(in view of) his effort.
E 依赖于：rely on、depend on、resort to
He resorted to books when he had problems.
F 条件关系：when、once、as soon as、As long as
As soon as he got the money, he would leave the country at once.
G 分词短语，不定式做状语：Failing in the final exam, she cried.
A 对比：while、whereas、on the other hand
前后连接的是平行结构，on the other hand前必定有on one
A 同级比较the same to
B 比较级：more than、-er than
H 否定+比较=最高级No one is more outstanding than him.
隐形否定：fail to、refuse、remove、mi、reject、aence of、lack of
双重否定：not fail to、not illegal、not uncommon、not
to”可以换成”be obliged to”，”help to”可以换成”contribute
name”来代替。”美化”对应的单词“beautify”,可以用“make sth more
动词和名词的搭配：raise awareness, adopt measures, take steps, adopt
动词词组的搭配：give a green light to, deepen one’s understanding of,
pave the way for
形容词和名词的搭配：compelling reason, ample evidence, harsh punishment
名词词组搭配：environmental awareness, coverage of crime, health effect
介宾短语的搭配：in the media, on the internet, on television, in
表示某个特定意思的习惯搭配：close the rich/poor gap, discriminate
between right and wrong，have a higher chance of developing cancer, fail
to achieve work-life balance
improve the problem →solve the problem or improve the situation
contact with violence→exposure to violence
advertisements about children→advertisements aimed at children.
Chinese language craze refers to the phenomenon that a growing number of
foreigners start to learn Chinese. The number of Chinese learners
increases rapidly in many countries. According to statistics, more than
3000 institutions of higher education in 109 countries are offering
courses on Chinese language. A survey indicates that they learn Chinese
for the main purpose of travelling in China, engaging in trade
activities and knowing China and the Chinese culture. The underlying
reasons for this craze lie in the rapid development of China’s economy,
which enhances the international status and the influence of China. This
global Chinese language craze conveys a message that people around the
world are eager to know the Chinese culture.
Silver industry is a new term referring to the industry targeted at
senior citizens. It covers a wide range of fields, including health
service, home service, tourism and entertainment, education and so on.
With China stepping into the aging society, the silver industry gets
prosperous. More and more elderly people go travelling every year and
choose to study in the universities for senior citizens after they
retire. Related statistics show that the number of senior citizens aged
more than 60 accounts for 11-odd percent of the population in China. At
present, the market demand of the silver industry stands at about 800
billion RMB, giving great room for the industry to develop.
Traffic jam has been a problem shared by all countries around the
world.In recent years,the urbanization of China reaches an unprecedented
level,which leads to especially prominent traffic jam in large and
medium-sized cities.The problem of traffic jam has extended from part to
a wide range.Traffic jam not only affects the efficiency and quality of
uiban life,but also causes a series of economic and social problems like
environmental pollution and energy deficiency,which greatly restricts
the development of cities.To solve the problem,well-organized public
transportation is indispensable.Low ticket price is the basic guarantee
of priority of public transportation.In the long term,we must vigorously
develop rail transportation to lessen traffic jam.
“平民百姓”实现了自己的梦想，走上了星光大道(avenue of stars)。
A draft refers to a procedure during which people who perform well in a
certain aspect are picked out.In ancient China,there were also drafts
which generally referred to court drafts.From the year 2004 when Super
Girl was on,talent show programs began to come into our sight.Such kind
of nearly“zero threshold”talent show offers everyone an opportunity to
become popular.Later,there came My Hero,Super Boy,My Show and The Voice
of China.As these talent show programs appeared one by one,Chinese TV
audience hardly had time to rest.Through these talent show programs,many
talented “ordinary people”realized their dreams and stepped on the
avenue of stars.
As early as 100 years ago，studying abroad was seen as a strategy to
strengthen the national power.Now，more and more students crave for
studying abroad.Students nowadays are a bit aimless and casual when
craving for studying abroad, which leads to many problems like
exhausting all the savings of their family,wasting their youths but
ending up by giving up halfway and even becoming trouble-making
students”with many bad habits.It’s better not follow the current craze
of studying abroad blindly and it’s most important to choose the
direction fit for oneself,for“one can perform well in any field”.
最后，小伙伴们，真题卷买了吧，现在还藏着舍不得做，难道要see you next
Austrians are particularly critical of the narrow concept of economics
which originated with Robbins and his well-known definition of the
subject. In his own words, “economics is the science which studies human
behavior as a relationship between ends and scarce means which have
alternative uses” (Robbins 1932, 16). Robbins’s conception implicitly
presupposes a given knowledge of ends and means and reduces the economic
problem to a technical problem of mere allocation, maximization or
optimization, subject to certain restrictions which are also assumed
known. In other words, Robbins’s concept of economics reflects the
essence of the neoclassical paradigm and can be considered completely
foreign to the methodology of the Austrian school as it is understood
today. Indeed, Robbins portrays man as an automaton, a simple caricature
of a human being, who may only react passively to events. In contrast
with this view, Mises, Kirzner and the rest of the Austrian school
maintain that man does not so much allocate given means to given ends,
as constantly seek new ends and means, while learning from the past and
using his imagination to discover and create the future (via action).
Thus, for Austrians, economics forms part of a much broader and more
general science, a general theory of human action (and not of human
decision or choice). According to Hayek, if for this general science of
human action “a name is needed, the term praxeological sciences now
clearly defined and extensively used by Ludwig von Mises, would appear
to be most appropriate” (Hayek 1952a, 209).
Economics is not about things and tangible material objects; it is about
men, their meanings and actions. Goods, commodities, and wealth and all
the other notions of conduct are not elements of nature; they are
elements of human meaning and conduct. He who wants to deal with them
must not look at the external world; he must search for them in the
meaning of acting men. (Mises 1996, 92)
For the above reasons, members of the Austrian school find that many of
the theories and conclusions that neoclassicals form in their analysis
of consumption and production make no sense in terms of economics. One
example is the “law of equality of price-weighted marginal utilities”,
which rests on very shaky theoretical foundations. In fact this law
presupposes that the actor is able to simultaneously assess the utility
of all goods at their disposal, and it overlooks the fact that every
action is sequential and creative, and that goods are not assessed at
the same time by equalizing their supposed marginal utilities, but
rather one after the other, within the context of different stages and
actions, for each of which the corresponding marginal utility may be not
only different but incomparable (Mayer 1994, 81–3)
The great merit of the Austrians is to have demonstrated that it is
perfectly possible to develop the entire corpus of economic theory in a
logical manner, while introducing the concepts of time and creativity
(praxeology); that is, without any need of functions nor assumptions of
constancy which do not fit in with the creative nature of human beings,
who are the only true protagonists of social processes, the object of
research in economics.
et us bear in mind that it fully agrees with the original etymological
meaning of the word “enterprise” (empresa in Spanish). Indeed both the
Spanish word empresa and the French and English word entrepreneur
derive etymologically from the Latin verb in prehendo-endi-ensum, which
means “to discover, to see, to perceive, to realize, to capture”; and
the Latin term in prehensa clearly implies action and means “to take,
to seize”. In short, empresa is synonymous with action
We could also cite, following Polanyi, the example of a person who is
learning to ride a bicycle and attempts to maintain their balance by
moving the handlebars to the side toward which they begin to fall,
creating in this way a centrifugal force which tends to keep the bicycle
upright; yet almost no cyclist is aware of or familiar with the physical
principles behind this ability. On the contrary, what the cyclist
actually uses is a “sense of balance”, which in some way informs them
how to behave at each moment to keep from falling. Polanyi goes so far
as to assert that tacit knowledge is in fact the dominant principle of
all knowledge (Polanyi 1959, 24–5). Even the most highly formalized and
scientific knowledge invariably follows from an intuition or an act of
creation, which are simply manifestations of tacit knowledge. Moreover
the new knowledge we can acquire through formulas, books, charts, maps
and so on is important mainly because it helps us to reorganize our
entire framework of practical, entrepreneurial information from
different and increasingly rich and valuable perspectives, which in turn
opens up new possibilities for the exercise of creative intuition.
Therefore the impossibility of articulating practical knowledge
manifests itself not only “statically”, in the sense that any apparently
articulated statement contains information only insofar as it is
interpreted through a combination of prior, inarticulable beliefs and
knowledge, but also “dynamically”, since the mental process used in any
attempt at formalized articulation is itself essentially tacit,
Another type of knowledge that cannot be articulated and that plays an
essential role in the functioning of society is composed of the set of
habits, traditions, institutions, and juridical and moral rules that
comprise the law that make society possible, and that human beings learn
to follow, though we cannot articulate in detail nor theorize about the
precise functions that these rules and institutions perform in the
various situations and social processes in which they are involved.
1.各种令人眼花缭乱的食物=the bewildering variety of
The exercise of entrepreneurship does not require any means. That is to
say, entrepreneurship does not entail any costs and is therefore
fundamentally creative. This creative aspect of entrepreneurship is
embodied in its production of a type of profit which, in a sense, arises
out of nothing, and which we shall therefore refer to as pure
entrepreneurial profit. To derive entrepreneurial profit one needs no
prior means, but only to exercise entrepreneurship well. It is
particularly important to emphasize that any act of entrepreneurship
brings about three extraordinarily significant effects. First,
entrepreneurship creates new information. Second, this information is
transmitted throughout the market. Third, the entrepreneurial act
teaches each of the economic agents involved to tune their behavior to
the needs of the others. These consequences of entrepreneurship, as the
authors of the Austrian school have analytically formulated them, are
so important that they are worth studying closely one by one.
2.从认知的角度理解=in cognitive terms，其中in
Each entrepreneurial act entails the ex nihilo creation of new
information or knowledge. This creation takes place in the mind of the
person who initially exercises entrepreneurship. Indeed when a person we
shall call “C” realizes that a profit opportunity exists, new
information is created in his mind. Furthermore once “C” takes action
and contacts, for instance, “A” and “B”, and buys cheaply from “B” a
resource that “B” has too much of and then sells it at a higher price to
“A”, who needs it urgently, new information is also created in the minds
of “A” and “B”. “A” realizes that the resource she lacked and needed so
desperately to accomplish her end is available elsewhere in the market
in greater quantities than she had thought, and that therefore she can
now readily undertake the action she had not initiated before due to the
absence of this resource. For his part, “B” realizes that the resource
he so abundantly possesses yet did not value is keenly desired by other
people, and that therefore he should save and protect it, since he can
sell it at a good price.
Thus the key importance of not disregarding anyone’s entrepreneurship.
Even the humblest people, those of the lowest social status or most
lacking in formal knowledge, will exclusively possess at least small
bits or pieces of knowledge and information which can be of decisive
value in the course of social events. From this standpoint, it is
obvious that our concept of entrepreneurship is of an essentially
humanistic nature, a concept which makes economics, as it is understood
and advanced by members of the Austrian school, the quintessential
4.支配语法=dictate a grammar
The reason our political system was superior to those of all other
countries was that the political systems of other countries had been
created by introducing laws and institutions according to the personal
judgment of particular individuals, like Minos in Crete and Lycurgus in
Sparta . . . In contrast, our Roman republic is not the personal
creation of one man, but of many. It has not been founded during the
lifetime of any specific individual, but over a number of centuries and
generations. For there has never been in the world a man intelligent
enough to foresee everything, and even if we could concentrate all
brainpower into the head of one man, it would be impossible for him to
take everything into account at the same time, without having
accumulated the experience which practice provides over the course of a
long period in history.
5.涵盖规模=entail the dimensions
Luis Saravia de la Calle, who was the first to shed light on the true
relationship between prices and costs in the market. Saravia de la Calle
asserted that in any case, costs tend to follow prices and not vice
versa. Thus he was before his time in exposing the errors of the
objective theory of value, which the theorists of the English classical
school would later develop, and which would provide the foundation for
the exploitation theory of Karl Marx and his socialist successors. In
his work, Instrucción de mercaderes (Instruction to Merchants),
published in Spanish in Medina del Campo around the year 1544, Saravia
de la Calle writes: Those who gauge the just price of an article by the
labor, costs, and risks borne by the person who deals in or produces the
merchandise are seriously mistaken; for the just price springs from the
abundance or lack of goods, merchants, and money, and not from costs,
labor, and risks. (Saravia de la Calle 1949, 53)
In this book Mariana plunges into a true Austrian-style analysis
concerning the impossibility, due to a lack of information, that a
government could organize civil society based on coercive commands.
Indeed it is impossible for the state to obtain the information it needs
to give a coordinating quality to its commands, and therefore its
intervention tends to cause disorder and chaos. Thus, with reference to
government, Mariana states: “It is a grave mistake for the blind to wish
to lead the sighted.” He adds that the authorities “do not know the
people, nor the events, at least in terms of all of their circumstances,
upon which success depends. Inevitably they will commit many serious
errors, and people will be troubled as a result and will scorn such a
blind government.” Mariana concludes that “power and command are mad”
and when “there are too many laws, as they cannot all be followed, or
even known, respect is lost for all of them”
7.阻止和消除饥饿=stem and eradicate hunger
In short, the Scholastics of the Spanish Golden Age were able to
articulate what would later become the key theoretical principles of the
Austrian school of economics, specifically: first, the subjective
theory of value (Diego de Covarrubias y Leyva); second, the correct
relationship between prices and costs (Luis Saravia de la Calle); third,
the dynamic nature of the market and the impossibility of realizing the
equilibrium model (Juan de Lugo and Juan de Salas); fourth, the dynamic
concept of competition understood as a process of rivalry between
sellers (Castillo de Bovadilla and Luis de Molina); fifth, the principle
of time preference (rediscovered by Martín de Azpilcueta); sixth, the
profoundly distorting effect inflation exerts on the real economy (Juan
de Mariana, Diego de Covarrubias and Martín de Azpilcueta); seventh,
the critical analysis of fractional-reserve banking (Luis Saravia de la
Calla and Martín de Azpilcueta); eighth, the recognition that bank
deposits form part of the money supply (Luis de Molina and Juan de
Lugo); ninth, the impossibility of organizing society via coercive
commands, since the information necessary to give such commands a
coordinating quality is lacking (Juan de Mariana); and tenth, the
libertarian tradition that all unjustified intervention in the market
constitutes a violation of natural law (Juan de Mariana).
8.某事由某人做出=something is initiated by somebody
To understand the influence that the Spanish Scholastics exerted on the
subsequent development of the Austrian school of economics, we must
especially remember that in the sixteenth century the Emperor and King
of Spain, Charles V, sent his brother, Ferdinand I, to be King of
Austria. Etymologically, “Austria” means “eastern part of the empire”,
an empire which at that time encompassed practically all of continental
Europe, with the only notable exception of France, which remained
isolated and surrounded by Spanish forces. Therefore it is easy to
understand how the Spanish Scholastics came to intellectually influence
the Austrian school, a situation which was not a mere coincidence or
caprice of history, but which arose from the intimate historical,
political and cultural relations which developed between Spain and
Austria beginning in the sixteenth century (Bérenguer 1993, 133–335).
These relations would be maintained for several centuries, and Italy
also played a vital role, as a cultural bridge across which the
intellectual exchange between the far points of the empire (Spain and
Austria) flowed. Thus there are strong arguments behind the thesis
that, at least early on, the Austrian school embodied a Spanish
9.成功的学术生涯的先决条件=a prerequisite for a successful academic
Very early on, the young Menger realized that the classical theory of
price determination, as Adam Smith and his Anglo-Saxon followers had
formulated it, left much to be desired. Menger’s personal observations
of the functioning of the stock market (during one period he was a stock
market correspondent for the Wiener Zeitung), along with his own
research, led him to write at 31 years of age, in, according to Hayek,
“a state of morbid excitement” (Hayek 1992, 69), the book which would
officially give birth to the Austrian school of economics. In this book
the author strove to establish the new foundations upon which he
believed it was necessary to rebuild all economic science. These
principles essentially included the development of an economic science
which would always rest on “man”, viewed as a creative actor and the
protagonist of all social processes and events (subjectivism), as well
as, for the first time in the history of economic thought, the
formulation, based on subjectivism, of an entire formal theory on the
spontaneous emergence and evolution of all social (economic, legal and
linguistic) institutions, understood as established behavior patterns.
All of these ideas are incorporated in the book, Principles of
Economics, which Menger published in 1871, and which would become one of
the most influential works in the history of economic thought.
10.诠释语言的基本结构=unfold the fundamental structure of a language
He asserts that economic scientists should always adopt the subjective
perspective of the acting human being, and that this perspective should
exert a decisive influence on the way in which all economic theories are
formulated. Hayek, in reference to this new subjectivist conception
Menger proposes, even writes: “It is probably no exaggeration to say
that every important advance in economic theory during the last hundred
years was a further step in the consistent application of
Let us suppose that Robinson Crusoe has just arrived on his island and
spends his time picking berries from bushes by hand, his only means of
subsistence. Each day he devotes all of his efforts to gathering
berries, and he picks enough to survive and can even eat a few extra
daily. After several weeks on this diet Robinson Crusoe makes the
entrepreneurial discovery that with a wooden stick several meters long,
he could reach higher and further, strike the bushes with force and
gather many more berries in far less time. The only problem is that he
estimates it could take him five whole days to find a suitable tree from
which to take the stick and then prepare it by removing its branches,
leaves and imperfections. During this time he would be compelled to
interrupt his berry picking. If he wishes to act on his idea and produce
the stick, he will have to somewhat reduce his consumption of berries
for a number of days and store the remainder in a basket until he has
enough to survive for five days, the predicted duration of the wooden
stick’s production process. After planning his action Robinson Crusoe
decides to undertake it, and therefore he must first save a portion of
the berries he picks by hand each day, thus reducing his consumption by
that amount. This clearly represents an inevitable sacrifice, which he
nevertheless deems well worth his effort in relation to the goal he
longs to achieve. So he decides to reduce his consumption (in other
words, to save) for ten days, let us say, while storing his leftover
berries in a basket until he has accumulated an amount that he estimates
will be sufficient to sustain him while he produces the stick.
It is clear that, just as the difference between the “rich” Robinson
Crusoe with the stick and the “poor” Robinson Crusoe without it lay in
the capital good the former had obtained through prior saving, the
essential difference between rich societies and poor societies does not
stem from any greater effort that the former devote to work, nor even
from any greater technological knowledge that the former hold. Instead
it arises mainly from the fact that rich nations possess a more
extensive network of capital goods wisely invested from an
entrepreneurial standpoint. These goods consist of machines, tools,
computers, software, buildings, semi-manufactured goods and so on, and
they exist due to prior saving by the nation’s citizens.
In a modern economy present and future behaviors are reconciled through
entrepreneurial activity in the market where present goods are exchanged
for future goods and where the interest rate, the market price of one
type of good in terms of the other, is established. Thus the more
plentiful the savings, that is, the larger the quantity of present goods
sold or supplied, other things being equal, the lower their price in
terms of future goods; and consequently, the lower the market rate of
interest. This indicates to entrepreneurs that more present goods are
available to enable them to increase the length and complexity of the
stages in their production processes, thereby making these stages more
productive. In contrast, the fewer the savings, that is, other things
being equal, the less willing economic agents are to give up immediate
consumption of present goods, the higher the market rate of interest.
Hence a high market rate of interest shows that savings are relatively
scarce, an unmistakable sign that entrepreneurs must heed in order to
avoid unduly lengthening the different stages in the production process
and generating, as a result, discoordination or maladjustments which
pose grave danger to the healthy, harmonious and sustained development
of society. In short, the interest rate conveys to entrepreneurs which
new productive stages or investment projects they can and should embark
on and which they should not, in order to keep coordinated, as far as
humanly possible, the behavior of savers, consumers and investors, and
to prevent the different productive stages from remaining unnecessarily
short or becoming too long.
Between 1920 and 1934 Mises organized, directed and held a famous
economics seminar (Privatseminar) in his official office at the Vienna
Chamber of Commerce, where he was chief of the finance department and
general secretary, and where his involvement gave Mises a strong
influence over the economic policy of his country. This seminar, which
was held on Friday evenings, was attended not only by students who were
preparing their doctoral theses under Mises’s guidance, but also, via
invitation, by highly prestigious economists from all over the world.
The seminar meetings were attended regularly by Friedrich A. Hayek,
Fritz Machlup, Gottfried von Haberler, Oskar Morgenstern, Paul L.M.
Rosenstein-Rodan, Felix Kaufmann, Alfred Schutz, Richard von Strigl,
Karl Menger (the mathematician son of Carl Menger, founder of the
Austrian school) and Erich Voegelin, among the German-speaking
participants. From the UK and the USA, Lionel Robbins, Hugh Gaitskell,
Ragnar Nurske and Albert G. Hart attended, among others. Later, in the
USA, Mises again offered his seminar at New York University, where it
was held on Thursday evenings from the autumn of 1948 to the spring of
- Among the many participants during this second period, the then
future professors Murray N. Rothbard and Israel M. Kirzner stand out.
Hayek always wished to avoid involvement in politics. Furthermore he
considered the role of the intellectual, who must make scientific truth
their chief goal in life, to be incompatible with the role of the
politician, who is always obliged to yield to the dictates of public
opinion to secure votes (Hayek 1991, 45). Hence Hayek believed that in
the long term, efforts directed toward convincing intellectuals (thus
his great success in founding the classical liberal Mont Pèlerin
Society) or influencing public opinion would be much more productive.
(Hayek dissuaded Anthony Fisher from entering politics and convinced
him that it would be much more useful to create the Institute of
Economic Affairs, and later the Atlas Research Foundation, to spread
classical liberal ideas throughout the world.) So without the strategic
initiatives that Hayek took, it would have been impossible to conceive
of the change in public opinion and in the intellectual sphere which led
to the fall of the Berlin Wall and to the free market/conservative
revolution that took place in the USA under Ronald Reagan and in the UK
under Margaret Thatcher, a revolution which has exerted, and continues
to exert, such a powerful influence on a worldwide scale.
we should comment on the development of the Austrian theory of
competition and monopoly, which calls for the abandonment and
reconstruction of the clumsy static theory of markets that is advanced
in textbooks, and its replacement with a theory of competition,
understood as a dynamic, purely entrepreneurial process of rivalry. Such
a theory renders irrelevant or inexistent the problems of monopoly,
understood in the traditional sense, and focuses on institutional
restrictions on the free exercise of entrepreneurship in any sphere of
the market. Furthermore an important economic policy corollary of the
Austrian analysis of competition and monopoly is the reconsideration of
all anti-trust policy and legislation, which from the Austrian
perspective becomes largely detrimental and superfluous (Kirzner
1998–99, 67–77; Armentano 1972).