Stabilization Plans: an Approach From the Austrian School of Economics

In economic literature, stabilization plans designed to overcome high inflation or hyperinflation are usually classified as either “orthodox,” with a monetarist origin, or “heterodox,” with a Keynesian approach, depending on the policy tools used. However, an alternative based on the principles of the Austrian School of Economics is often overlooked. This approach not only aligns with the monetary and exchange rate policy proposals of Austrian thinkers but also respects the fundamental principles of money as a key social institution. Moreover, it includes a proper theory of capital, which is lacking in both monetarist and Keynesian traditions.