Who was listening before the Financial Crisis of 2008 to Arrow’s warnings and the teachings of Coase? Due to transaction costs, incomplete foresight and bounded rationality not all risks that would be desirable to shift can be shifted through the market. Financial firms and other institutions...

German “Ordnungstheorie” (~ system theory, ordo theory) relates essentially to Walter Eucken (Freiburg) who attempted to strike a balance between the economics of the German Historic School, still relevant in Germany of the 1930s, and its opposing neoclassical analysis. The paper starts,...

"The initial objective of the paper is to describe the way in which the term 'New Institutional Economics' (NIE) emerged in the literature and became the designation for a new field concerned with the study of various analytical techniques designed for the exploration of institutional phenomena....

It is first shown that Oskar Lange's claim to have invalidated Ludwig von Mises's contention of the impossibility of rational economic activity in a socialist economy is neither logically nor essentially convincing. Furthermore, the Mises objection applies also in case of Jaroslav Vanek's...

The development of the European Monetary Union is related to Milton Friedman’s critique of the Bretton Woods System that started a vigorous debate about “fixed versus flexible exchange rates.” This paper briefly contrasts the arguments pro and con flexible exchange rates at this time....