How does Austrian Economics compare to Keynesian Economics?
As I said in the previous explanation, Austrians are extremely laissez-faire, whereas Keynesians believe the best way to handle different economic conditions is through the use of governmental policy — whether fiscal (taxation), or monetary (use of interest rates and currency-in-circulation). Keynesianism derives from the theories of John Maynard Keynes. Interestingly, Keynes came to repudiate his own theories, and even believed governments would use currency and interest-rate policies to confiscate the wealth of its citizens.
