3. Rothbard, Kirzner, and Lachmann: 1956-1974
Three major economists contributed to the Austrian revival: Rothbard (1926 -1995), Kirzner (1930 -), and Ludwig M. Lachmann (1906-1990).
Two of them, Rothbard and Kirzner, were Mises' students at New York University when he wasteaching, every Thursday evening, seminar on economic theory as permanent "visiting Professor" atthe Graduate School of Business.
Rothbard attended at Mises' seminars when he was graduate student at Columbia University andwas Joseph Dorfman's student. Already a great defender of free-market, Rothbard had beenintroduced to Mises while he was "hanging out" at the Foundation for Economic Education (FEE).
Kirzner attended at Mises' seminars when he was completing a MBA with a major in accounting.After meeting Mises and attending his seminars, he "saw the light" and decided to pursue a Ph.D.under Mises.
(Little story, when Kirzner came to give a talk in Aix-en-Provence – where I am from -, he told us,that when he was planning to do a Ph.D., he received an offer from Machlup, who was also a Mises'student, to come to pursue his Ph.D. at Princeton. He went to see Mises for advice and Mises kindlyadvised him to accept the offer. Mises considered that working under the direction of Machlup was agreat opportunity for Kirzner. Kirzner turned down Princeton's offer.)
The third contributor to the Austrian revival was a Hayek's student, Ludwig Lachmann, at LSE.Nevertheless, there is no doubt that Mises had a strong impact on Lachmann.
We can list Rothbard and Kirzner's works which have contributed to the revival of AustrianEconomics in 1974. Lachmann's contributions, while important, have more contributed to thedevelopment of Austrian School from inside; that is to say, Lachmann's work has played a role of agitator by raising questions.
Rothbard' works are Misesian in the strict sense of the term. Follower of Mises, he belongs to the"rationalist" branch of Austrian Economics (See Hoppe (1999), "Murray Rothbard: Economics,Science and Liberty"). Between 1956 and 1974, Rothbard has already published that we wouldcalled today classics in Austrian Economics:
1956: "Toward a Reconstruction of Utility and Welfare Economics" – In thismasterpiece, he develops his concept of
1960: "The Mantle of Science" – In this paper, Rothbard develops a defense of Misesian/Austrian methodology.
Man, Economy, and State
– Treatise on Economics. He wrote this treatiseat the age of 36! It is a "simplified" version of Mises'
that wasintended to economists not familiar with Austrian Economics. However, thisbook contains to elaboration of Mises' work: A Theory of Monopoly and atypology of Government Interventions.
What has Government Done to Our Money?
– This booklet is anintroduction to monetary theory and
America's Great Depression
– Applicationof Austrian Business Cycle to the Great Depression; the cause of GreatDepression originates in FED's inflationary monetary policy in the 20's.
Power and Market
– Elaboration and Extension of
Man, Economy, and State
's Chapter XII on Government Intervention.
1973: "Praxeology as the Method of Economics," "Praxeology as the Method of Social Sciences," Value Implications of Economic Theory."