Currency Causality


The fundamental economic causality, need → economic good, present in TET’s Austrian monetary theory, and absent in the Keynesian, monetarist and Misian-Austrian theories.

It is not scientifically correct and less still is it necessary to abandon the fundamental economic causality:

need economic good

to develop a theory and explain currency and banking institutions.

The encouraging fact is that the conclusion is in line with the Popperian epistemology of the sacred respect that science must have for its primitive terms, the foundations of all theoretical-scientific development. On the other hand, the conclusion we come to seems to indicate that science does not progress through Kuhnean “paradigms”. These could explain, instead, states of stalemate and decay (Bawerkian-Wicksellian dichotomies). Whatever our opinion, it is clear we do not know about epistemology what we presume to know about economics.

Buenos Aires, February 2013

Carlos A. Bondone

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