ah love the austrian school, dogma and bigotry. fundamental assumption is that left alone markets ensure through price mechanism that supply and demand will form a unique equilibria in the economy and magically assume efficient allocation of resources, glory be to god.
however see below in dealing with general equilibrium some fundamental mathematical principles apply.
In mathematical terms the number of equations is equal to the number of individual excess demand functions which in turn equals the number of prices to be solved for. By Walras' law if all but one of the excess demands is zero then the last one has to be zero as well. This means that there is one redundant equation and we can normalize one of the prices or a combination of all prices (in other words, only relative prices are determined, not the absolute price level). Having done this, the number of equations equals the number of unknowns and we have a determinate system. However, because the equations are non-linear there is no guarantee of a unique solution. Furthermore, even though reasonable assumptions can guarantee that the individual demand functions are well behaved, these assumptions do not guarantee that the aggregate demand is well behaved as well.

in simple terms unless all demand functions for all markets are linear there is no guarantee of a unique equilibrium point. Real world is that there can be differing equilibrium points, thus different prices to clear markets, thus non-market intervention can lead to a more beneficial outcome.
sorry i forgot the austrian believe in the flat earth and believe mathematics has no place in economics

quite simply it is possible for some goods to be have a linear supply/demand curve and others to be parabolic in shape if the parabola does not intersect the linear function then no equilibria for whole economy can occur.

similar to current situation where nominal negative interests rates are required, as this is not possible market cannot create an equilibrium point

"thus different prices to clear markets, thus non-market intervention can lead to a more beneficial outcome."

Assuming what you say is true, then how is the information which is not available to the market going to be available to the non-market interventionist ie bureaucrat? Where is he going to get it from? How will he know what the curve is?

How will he know what the equilibrium point is?

Even if he knows it, by definition, that will be the point of *inaction*, won't it? It will be the point at which no-one has anything to gain from taking any action? So the point of the political intervention in respect to the equilibrium will be?

In comparing points on a curve, what is the unit of quantity that is being measured? How do you know it is constant?

All the snivelling, misunderstanding and misrepresentations are not refutations of Austrian theory.

ah austrians got to love they debating skills and intellectual firepower , stumped by simple mathematics.

pls answer why did business cycles go thru boom/busts prior to creation of reserve banks and the monetary system was on full gold standard as advocated by the Austrians?

pls see below

Why abandon floating exchange rates and revert to fixed exchange rates?

To answer this question it is necessary to first understand why exchange rates exists in the first place. Quite simply as different nations have different currencies for trade to occur it is necessary to have the ability to assess the relative value of differing currencies. In ideal situations after currency conversion the same units of a nation’s currency should enable the purchase of equivalent goods and services in the foreign nation as what could be purchased domestically.

Now all we have to do is look at the economist's Big Mac index to see how floating currencies divert from the ideal situation. The Aussie dollar compared to the actual exchange rate for $US is undervalued by 38%, the Euro against the $US is overvalued by 24%, the Swiss Franc against the $US is overvalued by 58% and the British pound is undervalued by 7%.

price clearing works doesn't it.
for price clearing to work in the current crisis we need to have negative nominal interest rates.
the austrians are probably the only people who would defend Hoover's inaction in the great depression

Slasher what you are saying is not even grammatical, let alone logical.

You have not yet established that what you are saying makes sense. What is the unit which the mathematics is measuring and how do you know it is constant? Answer?

(I know that you can't answer the questions I have asked you without self-contradiction or absurdity. And you Ken, I know why you didn't answer the questions I asked you in our previous discussion. It's because you can't. How do I know that? Because I got the questions from a theory that refutes you. If you could have answered them, you would.)

Have the intellectual honesty to admit it. Either that, or answer the questions.

Hey Slasher. What unit is the mathematics measuring? How do you know it is constant? Answer please?

So what are the answers to my questions?

As to the explanation of the business cycle before the existence of reserve banks, read 'What Has Government Done to our Money?: by Murray Rothbard.

Hey Slasher. What unit is the mathematics measuring? How do you know it is constant? Answer please?

You are merely displaying your ignorance of monetary history and theory.

The fact is this. The Austrian theory of economics has refuted you and the author. *After* you have understood what the argument is, and *after* you can correctly represent it, and *after* you have refuted it and *not before*, you will be in the position you are ignorantly and wrongly presuming to be in now.

The very fact that you lead with misrepresentations, and then when called on it, you fall back to evasion and a display of ignorance, just shows the intellectual standards that satisfy you.

What gets me about the critics of the Austrian school is that you don't seem care that you have been refuted. And then you've got the gall to accuse others of dogma!

Hey Slasher. What unit is the mathematics measuring? How do you know it is constant? Answer please?