Austrian economics is a school of thought centered on methodological individualism, subjective value, and free markets. Originating in 1871 with Carl Menger, it relies on deductive logic rather than mathematical modeling, advocating that economies are best driven by individual choice and are harmed by government intervention.Core Principles:Subjective Value: Value is not inherent in a good but is determined by individual, subjective preferences and how much a person desires it.Praxeology: The belief that economic theory should be deduced from fundamental axioms of human action, famously championed by Ludwig von Mises.The Economic Calculation Problem: Mises and Friedrich Hayek argued that central planning or socialism fails because, without a free price system, central authorities cannot rationally calculate how to allocate resources efficiently.Austrian Business Cycle Theory: The belief that artificial expansion of the money supply and artificially low interest rates by central banks lead to unsustainable booms and inevitable busts.The Austrian school vehemently opposes Keynesian economics and monetary interventions. While widely debated and largely rejected by mainstream economics for its lack of empirical data and mathematization, its profound focus on the unpredictability of human action heavily shapes libertarian and conservative economic policy.For a deep dive into the literature and history of this school of thought, you can explore the Mises Institute or review the Investopedia Austrian School Overview