Typicality and Novelty: Schütz and Shackle on the Paradox of Choice

This paper discusses the thoughts of the Austrian/American phenomenologist Alfred Schütz (1899–1959) and the British economist George Shackle (1903–1992) and their views on choice, which are in many ways very different, perhaps even inconsistent, but also complementary and may even have some shared elements. This is in particular so with regard to the problem of the paradox of choice, the overall insight that for choice to be informative, it must neither be predetermined nor random. Shackle has mainly focused on the creative aspect—on how choice originates while Schütz has tended to focus more on how people are able to make non-random choices by referring to the typical features of action. The paper argues that there are many differences Schütz and Shackle. The possibility that they are complementary approaches is indicated.     

Bilateral capital flows and the exchange rate: The case of the U.S.A. vis-à-vis Canada,France, West Germany and the U.K.

After a preliminary test (with generally negative results) of the interest parity assumption, an eclectic portfolio adjustment approach, which determines an exchange pressures variable (under a régime of a managed float) is constructed, for bilateral comparisons between the United States and its major trading partners taken individually. This approach to bilateral capital flows and managed exchange rate determination appears to function reasonably well, as judged by the empirical results. Interestingly, factors specific to individual exchange markets appear to play important roles in explaining bilateral capital flows and cross exchange rates, which would not occur in a Walrasian world, with global market clearing.     

Robert L. Bradley,Jr., Enron ascending: The forgotten years, 1984–1996. Hoboken,NJ: John Wiley and Sons, 2018. xix + 786 pages. USD 95.00 (hardcover)

The Review of Austrian Economics -