Study Break; Course on Money and Credit, J. Rogers on Rating Agencies

Experience is something you don’t get until just after you need it.–Steven Wright

Study Break

Let’s take a study break and return to the Coors case study this weekend.  You have a strong foundation of strategic logic to study the case. You learned from Wal-Mart that management did not expand from Arkansas into California or the Northeast back in 1985, but expanded at its periphery (like an amoeba), where it could readily establish the customer captivity and economies of scale that made it dominant. And it defended its base.  What did Coors do?

Mises Academy Course on Money and Credit

I mentioned the course with links to the books and study guide here:

This article by Professor Murphy discusses the course in more detail. I hope some of you join me in taking this rigorous tour of money and credit.

“Is This Course Going to Be Really Hard?”

Let’s be frank. Mises’s writing at times can be difficult, especially his earlier work when he was writing for other economists, rather than the lay public. The amateur fan of Austrian economics who flips through The Theory of Money & Credit might recoil, thinking it is too hard and that anything important from the book would have been distilled by Rothbard in Man, Economy, and State.

If I’ve just described your view, I suggest doing the first week’s reading (the first two chapters from Mises) with my study guide as a companion. You might be pleasantly surprised to discover that Mises’s prose, though a bit formal, is still accessible to the layperson. If — using my study guide for help — you can get through the first week’s readings, then I believe you have what it takes to get through the whole class. It’s true, we will get into material that is more complicated than what Mises lays out in the opening chapters, but then again that’s what you have me for, to explain it for you.

Now if you determine that you are capable of digesting the material, I would urge you to take the plunge and sign up for the course. Yes, Rothbard and others have explained the Austrian theory of the business cycle in other venues. However, by exploring the Misesian framework of money and banking, you will walk away with a much deeper understanding of his theory of economic fluctuations. For example, the typical objection that “we had business cycles before the Fed, so the Austrians are obviously wrong” will seem quite ludicrous after studying Mises’s classic work.

 Jim Rogers Savages the Credit Rating Agencies



5 responses to “Study Break; Course on Money and Credit, J. Rogers on Rating Agencies

  1. I think the worst idea I ever had was to read Human Action/Mises last. It seems to be a common meme that Mises is a bit archaic and hard to read. Maybe many others find him to be so but when I read Mises, I found it incredibly refreshing. Reading Mises gets you thinking about the world in a whole new way– he will entirely change your perspective on things you thought you knew and understood.

    Mises truly was a genius. Reading his works first hand is like having a chat with a genius and seeing the world through his eyes. It’s exciting and mind-expanding. I highly recommend it to everyone!

    (Then again, maybe I would’ve felt more intimidated if I hadn’t read Reisman’s Capitalism, first, which is definitely the most accessible of the three main Austrian treatises.)

    • No doubt Mises was a genius and a man of amazing courage. There is an independent man of character. I tackled Human Action first, but it didn’t truly sink in until reading Man, Economy and State (any investor who doesn’t understand the structure of production and time preference is flying half blind).

      I am tackling Captialism by Reisman now–a great work.

      I hope some will give the course a try. At the very least Murphy is a good speaker who is funny. Ask him after class in the Q& A to discuss Bernanke and the Fed in terms of the theory of money and credit.

      Thanks for your input.

  2. Mohammed Al-Alwan

    reading your blog makes feel like drinking from fire hose 🙂

  3. I haven’t been a student of this professor, but this course might be worth looking into for fellow readers:

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.