Austrian model

The Austrian model of economic thought emphasizes the importance of individual choices, entrepreneurship, and real-world time and knowledge in shaping markets. It argues that spontaneous order arises from voluntary transactions rather than central planning. The model highlights how interest rates coordinate savings and investment, and underscores the role of entrepreneurial discovery in resource allocation. It also stresses that economic cycles result from government interference and artificially low interest rates, leading to misallocations of capital. Overall, the Austrian approach values personal freedom, decentralized decision-making, and the dynamic nature of markets in explaining economic phenomena.