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Austrian School Of Economics

Definition of Austrian School Of Economics

Forerunner of unrestrained free market (libertarian) economics, its central concept is that the coordination of human effort can be achieved only through the combined decisions and judgments of individuals and cannot be forced by an external agency such as a government. It emphasizes complete freedom of association and sovereignty of individual property rights. Its other main tenets include (1) abolishment of central banks and return to the gold standard, (2) elimination of bank deposit insurance schemes so that bank failures punish bad investments, (3) institution of an information system that make real-time prices data available to everyone, (4) abandonment of mathematical models as too rigid and limited to be of any use. Most of its recommendations are fiercely opposed by the mainstream (both capitalist and socialist) economists who call it 'anarchist economics,' and barely acknowledge its existence. This body of thought was founded in 1871 in Vienna by Carl Menger (1840-1921) who developed marginal utility theory of value and carried on by Friedrich von Wiesner (1851-1926) who developed the concept of opportunity cost. It was further elaborated by Eugen von B?Âhm-Bawerk (1851-1914) who developed a capital and interest rate theory, Ludwig Edler von Mises (1881-1973) who developed a business cycle theory, and the 1974 Nobel laureate in economics, Friedrich August von Hayek (1899-1992) who unified the works of his predecessors.

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Financial Dictionary

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Financial Dictionary is a dictionary or database that contains the meaning of all financial terms. Financial Dictionary has been created to help anyone, interested in understanding financial terms. It is extremely important to know what the financial terms mean when signing on terms and conditions. When availing financial products, you can be easily cheated if you don’t know what you have signed up for. To avoid this, you must be aware on what the terms really mean.

 

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We have developed this Financial Dictionary that could be used by anyone for free on our website. We have provided the meanings of almost all the financial terms along with the context in which they can be used. If you have lingering doubts on any financial term, then all you must do is log on to our website and check out the Financial Dictionary.

 

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If you wish to invest in the stock market, then it is extremely important to understand each and every term associated with it. A small misunderstanding can lead to huge losses in a matter of few seconds. It is only wise to know the meaning of all the terms before investing. The most comprehensive Financial dictionary covering all the financial terms. Brought to you by India's largest Free Financial Education company - IndianMoney.com.

 

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If you want to invest in a financial product, you must understand various financial terms. Not doing this could mean losses. Many financial intermediaries misguide you to make quick profits. You can avoid this by understanding financial terms and make smart investment decisions.

 

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