This question is kind of a follow up to my previous question, in which I asked how I should proceed through Austrian economic literature from the position of someone who knows little of AE or plain economics in general. The general consensus was to start with Economics in One Lesson, which was great advice. I felt that Economics in One Lesson was clear, concise, and easy to understand from a layman’s perspective.
So I finish Economics in One Lesson and decide to move into Mises’ body of work. I thought that I would just start with The Theory of Money and Credit and move through his bibliography by publication date; rather discouragingly, I’ve already hit a road block. While I felt that Economics in One Lesson was easy to follow and understand, The Theory of Money and Credit, for me at least, is a much harder read. I’m 50 or so pages into the work, and while I feel I’ve picked up on some things, certain parts are flying right over my head. Some people have warned me, online and offline, that while Mises was a great economist, he was not a great writer; I’d have to agree.
So after all that background information, my question(s) is this; how do I proceed through The Theory of Money and Credit? Is there are study guide for it, like the one for Human Action? Did any of you face a similar problem, and if so, how did you overcome it?
Some people have warned me, online and offline, that while Mises was a great economist, he was not a great writer; I’d have to agree.
I’ve seen people bitch about a source I cite being too long, even though it would fit comfortably in Time magazine. Just say what you are having a problem with and I am sure someone here can help. Quoting specific passages and giving clickable links to the text are helpful.
Personally I think you’d be better reading Rothbard than MIsis first. Although Misis had a lot of great ideas, and was supremely influencial, he had the amazing talent of making dry, boring topics, even more dull. Rothbard’s writing style is much easier to grasp. Man, The Economy, and the State is an amazing overview of economic thought.
From what little I’ve read from Rothbard’s body of work, he is certainly an easier and more enjoyable read than Mises. I thought, rather naively it seems, that starting with Mises was best because a lot of his ideas were built upon by Rothbard and, I think, Hayek. But you could be right.
And in response to Ero, I’m posting this at midnight in my part of the world. I didn’t know that I’d have to post specific excerpts from The Theory of Money and Credit, so if its all right with you, I’ll make a much longer post with all of my questions tomorrow, quotes and all.
On the contrary, Mises is better and much more quotable than Rothbard!
Rothbard has an amazing essay on Welfare Economics, but besides that and his works on History of economic ideas, Mises’ writing is much better. (I have MES, first edition, two volumes, however, as well anyway, as I read them at the same time as Mises’ Human Action.)
If the idea of objective exchange value is the problem (its a work about money) I tell you what helped me understand it; maybe it’ll help:
Human action today will only yield results tommorrow. Thus, my actions today are aimed to satisfy me expected near future preferences.
Immediate past action reveal present preferences. This is evident to all actors.
If people accepted money when it also was demanded for industrial use, but also demanded it to use it as money, and this was in the immediate past, then people will accept paper money without industrial use even now (although its worth less) to use as money.
Why? They demand money to give it to other people, because other people accepted it yesterday to give to (yet) other people as money.
[5. It became money only through its industrial use, but now that is separate from its money purchasing power, which is objective, not subjective.]
Thus, a linear regression of supply and demand conditions determines the value of money.
Once you get over this point (because its a book about money money, not something that is merely a consumption good), its “smooth sailing”.
I had the same problem, jumping into the pool before I was ready to swim, so to speak. My advice would be to spend time soaking up the Mises Daily articles and maybe reading some shorter works like Rothbard’s What Has Government Done to Our Money? and mini-collections of von Mises’ stuff like Planning for Freedom.