I´ve just finished reading the most excellent “Time and Money” by Roger Garrison, and am using it as one of the sources for my BA paper. Garrison’s graphical models of the economy and particularly the capital structure got me thinking whether this framework couldn’t be expanded to an international scale by linking several economies and then extrapolating how each country’s capital structure is affected by decisions elsewhere through international trade flows and the fluctuations of currencies. Given the high degree of movement of capital goods between countries these days, there should be synergistic effects at play here that could help point the way to some interesting questions(and answers) such as the feedback loop between Chinese manufacturing of consumer goods and the rise of the housing bubble as portrayed in Peter Schiff’s Crash Proof. Something along the lines of The Heckser-Olin Model or the Gravity Model of Trade, only from an Austrian perspective.
My question is simple: Has any Austrian economist that you know of expanded Hayeks(and Garrisons) line of inquiry to the international stage, and if so, which essays or books are good source material?