ABSTRACT
Murray N. Rothbard Mises and F. A. Hayek articulated and vastly enriched the principles of Adam Smith at a crucial time in twentieth century. In 1912, Mises finished his breakthrough book, Theorie des Geldes und der Umlaufsmittel, later translated as The Theory of Money and Credit, which offered a sophisticated monetary model that challenged Irving Fisher's quantity theory of money. Money and Credit forged the missing link between micro-and macroeconomics. Hayek and John Maynard Keynes represented opposite sides during the 1930s. In the pages of the London Times, Hayek and Keynes debated the role of government. In the fall of 1934, with the Nazis' influence expanding rapidly, Mises decided to leave his beloved Austria to accept a position at the Graduate Institute of International Studies in Geneva, Switzerland. Yet he felt little hope of a return to free-market principles in academia or politics. Mises called his approach the regression theorem. The regression theorem helps answer an all-important puzzler in economics.
