'Carl Menger avoided the use of mathematics in his economics ... out of principle.'<blockquote>'The development of economics as a science which is always based on human beings, the creative actors and protagonists in all social processes and events (the subjectivist conception), is undoubtedly the most significant and characteristic contribution made by the Austrian School of economics, founded by Carl Menger. In fact Menger felt it vital to abandon the sterile objectivism of the classical (Anglo-Saxon) school whose members were obsessed with the supposed existence of external objective entities (social classes, aggregates, material factors of production, etc.). Menger held that economists should instead always adopt the subjectivist view of human beings who act, and that this perspective should invariably exert a decisive influence on the way all economic theories are formulated, in terms of their scientific content and their practical conclusions and results. On this topic see Huerta de Soto, “Génesis, esencia y evolución de la Escuela Austriaca de Economía,” in Estudios de economía política, chap. 1, pp. 17–55.
- Note 3,
Money, Bank Credit, and Economic Cycles (
pdf), page 267</blockquote>
'The real world is constantly changing, while mathematical models..' - Mish<blockquote>'However, let's throw out a definition as follows: Idiot - Someone devoid of common sense who lives in the shelter of academia or politics, with no real-world experience. Also included in this definition is someone with real-world experiences yet ignores the real world in favor of academics, politics, or desires.
Bernanke with a PhD, and Krugman with a Noble Prize both qualify as potential idiots under the above definition. Bear in mind that sometimes (when it suits their goals) both may say things that make perfect sense. I agree with Krugman about 20% of the time. Such is the problem with this definition of idiocy.'
- Mish,
Do These Idiots Realize How Stupid They Sound? August 07, 2011</blockquote>
Context - '..a man's affective response..'<blockquote>
'Austrian economics always was and will forever remain Mengerian economics.'Decade of Stimulus Yields Nothing But Mountain of Debt; What to Do About It?, August 07, 2011
Economics - '..acts of choice.' (‘..imagination of alternatives..’)’..experience in the social realm..'’..time preference..’’..the plan..’'A judgment of value .. a man's affective response to definite conditions of the universe..' - Ludwig von Mises</blockquote>