Austrian School (economics)

The Austrian School of economics is a school of thought that emphasizes individual decision-making, subjective value, and the role of entrepreneurship in the economy. It argues that markets function best when left to operate freely without government intervention. Key figures, like Carl Menger and Friedrich Hayek, stress the importance of voluntary exchange and the impact of time and uncertainty in economic activities. The school also critiques central planning, suggesting that only individuals can accurately assess their own needs and preferences, leading to more efficient resource allocation through the price mechanism in a competitive market.