Anthony J. Evans

The Neoliberal Revolution in Eastern Europe

This unique book develops two different but related research agendas: the study of the spread of ‘neoliberalism’ – as seen from the perspective of Eastern European post-communist evolutions; and the study of Eastern European transition – as seen from an ideas-centred perspective. It challenges a series of misunderstandings and myths about the spread of neoliberal economic ideas in Eastern Europe and offers a clearer understanding of progress since market reform began.

“SEARCH” VS. “BROWSE”: A THEORY OF ERROR GROUNDED IN RADICAL (NOT RATIONAL) IGNORANCE

Abstract Economists tend to view ignorance as “rational,” neglecting the possibility that ignorance is unintentional. This oversight is reflected in economists’ model of “information search,” which can be fruitfully contrasted with “information browsing.” Information searches are designed to discover unknown knowns, whose value is calculable ex ante, such that this value justifies the cost of the search. In this model of human information acquisition, there is no primal or “radical” ignorance that might prevent people from knowing which information to look for, lacking omniscience. Unlike ignorance that is rationally chosen on the basis of an accurate cost/benefit calculation, radical ignorance can explain human error. An account of error as grounded in radical ignorance bypasses the need to appeal to irrationality in order to explain economic (and other) mistakes.

The Spread of the Flat Tax in Eastern Europe: A Comparative Study

This paper is an exploratory comparative analysis of the spread of the flat tax in postcommunist Eastern Europe. The paper reviews the flat tax as a public policy prescription, discusses the various arguments that underpin its potential reception, introduces and applies a synthetic comparative method to study its spread in eleven East European countries, draws several conclusions regarding the conditions associated with implementing flat taxes, and suggests further research directions.

Contemporary Work in Austrian Economics

This article provides a brief survey of contemporary developments in the Austrian school of economics, signalling that: (i) the amount of Austrian research and the number of Austrian researchers is growing exponentially; (ii) good Austrian economists are not being marginalised by the economics profession; and (iii) there have been significant advances in our understanding of economics made recently. Scholars can embrace the second revival of Austrian economics and look confidently at the increasing academic credibility of the school.

The (Quantity) Theory of Money and Credit

The Theory of Money and Credit (1912) is rightly regarded as a seminal book in the development of the Austrian school approach to monetary theory. We argue that Mises’ understanding of the equation of exchange differs from both of the conventional textbook versions, and warrants recognition as being a distinct contribution. After supporting this claim we discuss it in light of expectations, monetary regimes, and the microfoundations of the quantity theory.

Ethnic enterprise governance: a public choice analysis of Liverpool's Chinatown

Purpose – The purpose of this paper is to use a case study of Liverpool, UK, to perform a public choice analysis of the governance of Chinatown. This case study is a theoretical application of clubs and interest group theory to ethnic economies.Design/methodology/approach – The paper is based on fieldwork conducted in the Chinatown of Liverpool, England. It utilises interviews, surveys and observation to capture the emergence of the organisation of the community.Findings – The paper demonstrates how the availability of regeneration funds can create incentives for voluntary community associations to switch into predatory rent‐seeking collectives. The characteristics of a Chinese community are predisposed towards being an effective interest group.Originality/value – The paper presents new primary data and is a rare attempt to chart the evolution and development of “ethnic enterprise governance”. It extends the existing literature on the economic organisation of Chinatown into a theory of the political repre...

An Appeal for Better Scholarly Discourse: How Bagus and Howden Have it Wrong on Free Banking

In their recent article in the Quarterly Journal of Austrian Economics, Bagus and Howden (2010) present “quibbles” with fractional reserve free banking. Or specifically, what they call “unaddressed issues” in this system, with a particular emphasis on Selgin (1988). We deem their arguments to be more substantial than “quibbles” and are part of a longstanding debate about fundamental aspects of monetary theory. We respond to their objections and attempt to specify how debate between the two sides might proceed more productively.

The Monetary Contraction of 2008/09: Assessing UK Money Supply Measures in Light of the Financial Crisis

Following the 2008/09 financial crisis renewed attention has been given to the ability of central banks to effectively monitor the quantity of money in circulation. We present a new definition of the money supply called “Austrian money supply” (MA) and apply it to the UK economy. Unlike conventional measures this suggests that the UK suffered a monetary contraction in from July 2008 until July 2009. We find further evidence that MA provides a constructive interpretation of broader macroeconomic activity and warrants attention from academics and policymakers.

The Upper Turning Point in the Austrian Business Cycle Theory

This paper studies a scenario - one of the six problems with Austrian Business Cycle theory raised by Hummel (1979) - that the ABCT literature has paid little attention. Will a constant rate of credit expansion necessarily lead to a boom-bust cycle? We conclude that this scenario has two potential outcomes, (1) a change in money demand brings the economy back towards equilibrium or (2) the economy will shift to sub-optimal but still sustainable path. We identify capital heterogeneity effects and the Ricardo effect as distinctly Austrian explanations for an upper turning point, even in a fiat money regime.

The Great EU Debt Write-Off A Classroom Simulation

Background. When one economic entity is both a creditor and debtor to another economic entity, a somewhat obvious and simple resolution is to cross-cancel their debts. Aim. To give students experience of researching important data and to conduct a policy-relevant negotiation exercise. Method. We created a classroom simulation in which students were required to research the debt positions of eight EU countries (Portugal, Ireland, Italy, Greece, Spain, Britain, France, and Germany) and then conduct a negotiation exercise with the goal of reducing the total debt burdens of the countries to which they were assigned. Results. Students discovered that a large amount of the EU debt burden can be written off by cross cancelling interlinked debt. Conclusion. As students were the focus of the exercise, their engagement and learning outcomes were high. The result is a platform to understand and discuss EU policy decisions and the wider implications of the debt crisis.