economic theory as a framework

Because it is a priori, Austrians can rely on their economic theory as a framework to interpret and understand what is going on in the economy. This is why Austrians can say without any doubt that, for example, credit expansion—an increase of the money in circulation—will cause market prices to increase if nothing else changes. However, Austrian economic theory cannot tell how quickly this happens or what exact prices will be affected to what extent. Only that this must be so This also means that Austrian theory is much narrower in scope than mainstream economics. Whereas the latter presumes to develop “theory” to explain anything that is related to the data at hand, such theory can and will be debunked (falsified) whenever data are collected that point in another direction สล็อต