Episode 70: GoldMoney’s Alasdair Macleod talks to Barbara Kolm, President of the Friedrich August v. Hayek Institute in Vienna, Austria, and Director of the Austrian Economics Center. They discuss the relevance of the Austrian School of economics and problems in the eurozone.
The Austrian School of economics is in their view becoming more and more relevant as Western economies slide deeper into trouble, with Austrian School economists able to explain and predict the booms and busts of credit driven bubbles. Austrian economics also places special emphasis on social behaviour of the individual, a point often overlooked by other economic theories.
Kolm states that many countries in the eurozone have been too busy redistributing wealth while forgetting to be productive and competitive. They talk about the big problems in France, where the government exerts a stifling influence over the economy. Kolm argues that we have to rethink the role of government in our modern societies.
On the subject of the euro, Kolm believes that it will be kept, but that some weaker countries will have to leave the club eventually. 2013 promises to be an interesting year as far as the currency union is concerned, with important elections in Germany and elsewhere.
In her view, more and more people will continue to be attracted to gold and silver as safe-havens amid increasing economic problems.
This podcast was recorded on 15 November 2012.