Miseskriterier

Miseskriterier refers to a set of economic principles and theories developed by Austrian economist Ludwig von Mises. Central to Miseskriterier is the concept of praxeology, the study of human action. Mises argued that economics could be understood through logical deduction from the self-evident axiom that individuals act purposefully to achieve their ends.

A key aspect of Miseskriterier involves the Austrian Business Cycle Theory (ABCT). This theory posits that economic booms and busts are not inherent to free markets but are instead caused by central bank intervention in the money supply. When central banks artificially lower interest rates below their natural market levels, they distort the price signals that guide production and investment. This leads to malinvestment, where resources are allocated to projects that are not sustainable in the long run, eventually resulting in a recession or bust as these unsustainable investments fail.

Miseskriterier also strongly advocates for laissez-faire capitalism and free markets. He believed that private property, free exchange, and sound money were essential for economic prosperity. Government intervention, particularly in the form of regulation, price controls, and central planning, was seen as detrimental, leading to inefficiency, shortages, and a decline in living standards. His work emphasized the importance of entrepreneurs and the dispersed knowledge within society as crucial elements for economic progress. Miseskriterier continues to influence libertarian and Austrian economic thought.