ABSTRACT
This chapter addresses the comparative advantages of the styles of thought ingrained in Austrian and post-Keynesian economics. It presents a survey of the course of Austrian economics and this will be followed by that of post-Keynesian economics. Economics must involve a theory of market activity as a learning process characterized by ignorance and alertness, where entrepreneurs attempt to correct past errors and coordinate future behaviour. To draw a parallel with the economic integration in the European Union, animosities between the formerly independent territories have declined in importance with the rise of their interdependence, propelled by the need to combine against common economic enemies. Post-Keynesian economics is widely respected for advancing research, not so much on the pricing process, but on the principles of pricing theories, most notably on cost-plus pricing. This is where the predominance of formal and informal institutions, which direct behaviour and stabilize an economy, comes in.
