<abstract xmlns="http://www.w3.org/1999/xhtml"><p>We wish to “quibble” with Murphy (2019). We mean this literally. That is, we are in strong and enthusiastic agreement with virtually everything he writes therein, except for one point: we think him guilty of allowing the cloven hoof of market failure into the Austrian tent. Our purpose in the present essay is to banish market failure from praxeological premises. To wit, he maintains that pure market processes such as a gold discovery can “distort” prices and interest rates, and we argue to the contrary.</p></abstract>

We wish to “quibble” with Murphy (2019). We mean this literally. That is, we are in strong and enthusiastic agreement with virtually everything he writes therein, except for one point: we think him guilty of allowing the cloven hoof of market failure into the Austrian tent. Our purpose in the present essay is to banish market failure from praxeological premises. To wit, he maintains that pure market processes such as a gold discovery can “distort” prices and interest rates, and we argue to the contrary.

Newly Discovered Gold Does Not Distort the Economy; It Is Not A Market Failure

Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics Loyola University New Orleans

Dr. John V. Connor Professorship in Economics and Finance and Professor of Economics, Loyola University New Orleans

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Newly Discovered Gold Does Not Distort the Economy; It Is Not A Market Failure"}

We wish to “quibble” with Murphy (2019). We mean this literally. That is, we are in strong and enthusiastic agreement with virtually everything he writes...

Newly Discovered Gold Does Not Distort the Economy; It Is Not A Market Failure

Published Online: Sep 18, 2020

Page range: 281 - 288

Received: Nov 09, 2019

Accepted: Jul 17, 2020

DOI: https://doi.org/10.2478/revecp-2020-0014

Keywords
distortion, interest rates, market failure, prices

© 2020 Walter E. Block et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Newly Discovered Gold Does Not Distort the Economy; It Is Not A Market Failure

Published Online: Sep 18, 2020

Page range: 281 - 288

Received: Nov 09, 2019

Accepted: Jul 17, 2020

DOI: https://doi.org/10.2478/revecp-2020-0014

Keywordsdistortion, interest rates, market failure, prices

© 2020 Walter E. Block et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
distortion, interest rates, market failure, prices