Jesús Huerta de Soto

Jesús Huerta de Soto Ballester (born December 23, 1956) is a Spanish economist of the Austrian School. He is a professor in the Department of Applied Economics at King Juan Carlos University of Madrid, Spain and a Senior Fellow at the Mises Institute.[2][3][4]

In this Spanish name, the first or paternal surname is Huerta de Soto and the second or maternal family name is Ballester.
Jesús Huerta de Soto
Jesús Huerta de Soto in 2014
Born (1956-12-23) 23 December 1956
Madrid, Spain
NationalitySpanish
Academic career
FieldPolitical economics
School or
tradition		Austrian School
Influences Ludwig von Mises, Carl Menger, Eugen von Böhm-Bawerk, Friedrich Hayek, Murray Rothbard, Israel Kirzner
AwardsKing Juan Carlos International Prize for Economics, Adam Smith Prize, Franz Kuechel Prize for Excellence in Economic Education[1]

Education and career

Huerta de Soto received a bachelor's degree in economics in 1978 and a PhD in economics in 1992, from Complutense University. His MBA in actuarial science is from Stanford University, 1985.[1][5] In 2000 he became a full professor of Political Economy at Universidad Rey Juan Carlos in Madrid.[6] Since 2007 he is director of the Austrian Economics Master Program Master Economía de la Escuela Austríaca at the Rey Juan Carlos University.[7]

Huerta de Soto was editor of seven volumes of the Spanish-language version of the University of Chicago Press's The Collected Works of F. A. Hayek. In that capacity, he was responsible for bibliographies, footnotes, introductions, and hiring translators.[8][9][10][11][12] He is a member of the editorial board of New Perspectives on Political Economy[13] and on the advisory editorial board of the Journal of Markets and Morality.[14] Huerta de Soto is a Senior Fellow of the Mises Institute[15] and is on the editorial board of its Quarterly Journal of Austrian Economics.[16] He was formerly a Trustee of the Madrid Institute for Advanced Studies (IMDEA)[17] in social sciences and was a vice-president and director of the Mont Pelerin Society from 2000 to 2004.[17]

Economic views

Classical liberalism

An anarcho-capitalist, Huerta argues that classical liberalism and their ideal is theoretically impossible; he also believes that classical liberals have failed to limit the power of the state.[18]

General equilibrium theory

Economist Leland B. Yeager has cited Huerta de Soto as an example of scorn in economics. Yeager states that Soto scorns general equilibrium theory, citing a passage in which Soto refers to the "pernicious analysis" of price equilibrium at "the intersection of mysterious curves or functions lacking any real existence...even in the minds of the actors involved."[19]

Austrian business cycle and full reserve banking

Huerta de Soto advocates full-reserve banking, a system in which 100% reserve requirements for banks would prevent any expansion of credit.[20][21]

In 2006, Huerta de Soto wrote an 876-page book on the subject, published in English by the Mises Institute as Money, Bank Credit, and Economic Cycles.[22] Samuel Gregg reviewed the book writing that "[t]he sheer length of this text will demand much time and concentration of readers wishing to fully absorb its insights. Certainly there is an element of repetition at different points. This tends, however, to reflect De Soto's determination to demonstrate that the moral, legal, and economic dimensions of money, credit, and banking cannot be artificially separated from each other without risking the loss of a sound understanding of the subject."[23] In the journal New Perspectives on Political Economy, Ludwig van den Hauwe suggested that "[e]ven if it may be difficult at this time to gauge in any precise manner the effect the book will have on the economics profession at large, there can be no doubt the book is destined to become a classic, both by virtue of the subject matters that are treated and in virtue of the manner in which they are treated: thoroughly and authoritatively."[24]

Larry J. Sechrest's review of Huerta de Soto's book, also published by the Mises Institute, stated that the author attempted to provide "final and decisive proof" that fractional reserve banking is incompatible with private property rights, morality, and a stable economy. Sechrest wrote that although Huerta de Soto presented a painstaking investigation of legal theory, banking history, business cycles, and medieval theological doctrine, a great deal of it is irrelevant to the book's thesis. Sechrest concludes "Above all, Huerta de Soto refuses to even consider the possibility that banks' customers may have been quite willing to face some risk exposure in exchange for the benefits 100 percent reserve banks are unable to provide" and believes that "any departure from 100 percent reserve banking is automatically taken to be evidence of malfeasance by bankers, even when there is no clear data on the details of the contractual relations negotiated by depositors."[25]

In his chapter on "Attempts to Legally Justify Fractional-Reserve Banking", Huerta de Soto considers the possibility "that a certain group of bank customers (or for the sake of argument, all of them) enter into a deposit contract aware and fully accepting that banks will invest (or loan, etc.) a large portion of the money they deposit". In this case, argues Huerta de Soto, "the supposed authorization from the depositors lacks legal validity" because few lay-persons understand the instability inherent in fractional-reserve banking: they believe their deposit is guaranteed, which Huerta de Soto considers a (near universal) misconception. As evidence of the true wishes of depositors, he cites the riots that resulted when banks suspended payments during the 1998–2002 Argentine great depression.[26]

Money and banking

Andre Azevedo Alves and Jose Moreira state that Huerta de Soto has written the "most complete and integrated analysis of the theories of banking" of the School of Salamanca.[27]

Reception

In a review for the Mises Institute's Review of Austrian Economics, Institute Associated Scholar Leland B. Yeager called the book "the most thorough treatment in print of Austrian ideas on banking and the business cycle".[28] Mises Institute Senior Fellow and former United States representative Ron Paul endorsed Huerta de Soto's view that fractional reserve banking is the cause of financial instability.[29][30] An Institute of Economic Affairs review described The Theory of Dynamic Efficiency as "[a] major new collection in the field of Austrian economics" and called Huerta de Soto "a leading Spanish scholar".[31]

Honorary doctorates

Publications

Books
  • Planes de pensiones privados [Private Pension Benefit] (in Spanish). Madrid: Editorial San Martin. 1984. p. 294. ISBN 978-8471402226. OCLC 11783782.
  • Lecturas de economía política [Readings in Political Economy] (in Spanish). Madrid: Unión Editorial. 1986–1987. ISBN 978-8472092013. 3 volumes: OCLC 434819610, 632702538, 632702507
  • La escuela austríaca: mercado y creatividad empresarial [The Austrian School: Market Process and Entrepreneurial Creativity] (in Spanish). Madrid: Editorial Síntesis. 2000. p. 203. Series: Historia del pensamiento económico. OCLC 247910035, 45036015, 644714015
  • Estudios de economía política [Studies in Political Economy] (in Spanish) (2a ed.). Madrid Unión Editorial. 2004. p. 342. ISBN 978-8472094086. OCLC 433538594.
  • Nuevos estudios de economía política [New Studies in Political Economy] (in Spanish) (2a ed.). Madrid Unión Editorial. 2007. p. 494. ISBN 978-8472094406. OCLC 733682262. Series: Nueva biblioteca de la libertad
  • The Austrian School: Market Order and Entrepreneurial Creativity. Cheltenham (UK); Northampton (MA, US): E. Elgar. 2008. p. 129. ISBN 978-1847207685. OCLC 494726098. Presents an exposition of the main tenets of the Austrian School of Economics. This book also explains the differences between the Austrian and the neoclassical (including the Chicago School) approaches to economics. It covers reviews of the contributions of the main Austrian economists, and analysis of the major objections to Austrian economics. (WorldCat summary)[34]
  • The Theory of Dynamic Efficiency. London: Routledge. 2009. p. 359. ISBN 978-0415427692. OCLC 488049275.[35]
  • Peníze, Banky a Hospodářské Krize [Money, Banking and Economic Crisis] (in Czech). Prague: ASPI a Liberální institut (ASPI and the Liberal Institute). 2009. p. 865. ISBN 978-8073574116. OCLC 320215103. (with Martin Froněk)[36]
  • Socialism, Economic Calculation, and Entrepreneurship. Cheltenham (UK); Northampton (MA, US): E. Elgar. 2010. p. 310. ISBN 978-1849800655. OCLC 781201845. (Originally as Socialismo, cálculo económico y función empresarial; part of the New Thinking in Political Economy series by the Institute of Economic Affairs)[37]
  • Dinero, Crédito Bancario y Ciclos Económicos (in Spanish) (5a ed.). Madrid: Unión Editorial. 2011. p. 685. ISBN 978-8472095472. OCLC 828532975.[38]
  • Chapter 2: A brief note on economic recessions, banking reform and the future of capitalism in Óscar Dejuán, Eladio Febrero, Maria Cristina Marcuzzo (editors), The First Great Recession of the 21st Century: Competing Explanations, Edward Elgar Publishing, 2011, ISBN 1849807469
  • Money, Bank Credit, and Economic Cycles (3d ed.). Auburn, AL: Ludwig von Mises Institute. 2012. p. 881. ISBN 978-1610161893. OCLC 807678778. (with Melinda A. Stroup, translator) Also available as a PDF here

Journals

For a list of articles published in Spanish, English, and other languages, see the Huerta de Soto website.[39]

See also

References
  1. Announcement regarding Jesús Huerta de Soto Archived 2013-10-29 at the Wayback Machine, Finance University under the Government of the Russian Federation, April 27, 2011.
  2. Jesús Huerta de Soto listing Archived 2013-10-17 at the Wayback Machine, Faculty of Law and Social Sciences, Universidad Rey Juan Carlos website.
  3. ""Faculty Members." Archived 2013-07-28 at the Wayback Machine Ludwig von Mises Institute.
  4. An Interview with Jesús Huerta de Soto Archived 2014-09-14 at the Wayback Machine in The Austrian Economics Newsletter. (Summer 1997; Volume 17, Number 2.)
  5. Jesús Huerta de Soto website Archived 2005-10-25 at the Wayback Machine, see Curriculum Vitae, Titulos Academicos.
  6. Jesús Huerta de Soto website Archived 2005-10-25 at the Wayback Machine, see Curriculum Vitae, Actividad Docente Desempeñada.
  7. "Master Economía de la Escuela Austríaca URJC". Archived from the original on 2021-03-26. Retrieved 2017-12-23.
  8. Jesús Huerta de Soto website Archived 2005-10-25 at the Wayback Machine, see Curriculum Vitae, Labor Editorial; section includes information on the Complete Works of F.A. Hayek, pp. 1–2; New Library of Liberty, pp. 3–4; Journal of Market Processes, pp. 4–5.
  9. "Plan of the Collected Works of Hayek". U of Chicago Press. Archived from the original on 11 July 2014. Retrieved 26 February 2014.
  10. Stephen Kresge, Editor, Money, Part I: Volume Five of the Collected Works of F.A. Hayek, Routledge, 2013, p. 1904 Archived 2014-06-17 at the Wayback Machine, ISBN 1135630755
  11. F.A. Hayek, The Collected Works of F. A. Hayek Archived 2014-01-10 at the Wayback Machine, Bruce Caldwell, General Editor, University of Chicago Press, 19 Volumes.
  12. Jesús Huerta de Soto edited these volumes of the series F.A. Hayek, Obras Completas (in Spanish), all published by Unión Editorial, Madrid: La Tendencia del Pensamiento Económico: Ensayos Archived 2014-01-01 at the Wayback Machine, editor with William Warren Bartley, Stephen Kresge, 1995; Las Vicisitudes del Liberalismo: Ensayos sobre Economía Austriaca y el Ideal de la Libertad Archived 2014-01-01 at the Wayback Machine, editor with Peter G. Klein, 1996; Contra Keynes y Cambridge: Ensayos, Correspondencia Archived 2014-01-01 at the Wayback Machine, editor with Bruce Caldwell, 1996; Hayek sobre Hayek: Un Diálogo Autobiográfico, La Fatal Arrogancia: Los Errores del Socialismo Archived 2014-01-01 at the Wayback Machine, editor with Stephen Kresge, Leif Wenar, 1997; Socialismo y Guerra: Ensayos, Documentos y Reseñas Archived 2014-01-01 at the Wayback Machine, editor with Bruce Caldwell, 1998; Ensayos de Teoría Monetaria (two volumes in 2000, with Stephen Kresge and José Antonio de Aguirre Archived 2016-06-01 at the Wayback Machine and 2001. For more details see Jesús Huerta de Soto website Archived 2005-10-25 at the Wayback Machine, Curriculum Vitae, Labor Editorial, A. Compete Works of F.A. Hayek, pp. 1–2.
  13. New Perspectives on Political Economy board listing Archived 2013-09-21 at the Wayback Machine at its website.
  14. Editorial Board listing of the Journal of Markets and Morality Archived 2014-01-09 at the Wayback Machine at its website.
  15. "Faculty and Staff". Archived from the original on 2013-07-28. Retrieved 2014-09-13.
  16. Editorial Board Listing Archived 2014-09-14 at the Wayback Machine of Quarterly Journal of Austrian Economics
  17. Jesús Huerta de Soto website Archived 2005-10-25 at the Wayback Machine, see Curriculum Vitae, Otros Meritos.
  18. Jesús Huerta de Soto (October 24, 2017). "Classical Liberalism versus Anarchocapitalism". Mises Institute. Archived from the original on October 21, 2020. Retrieved October 7, 2019.
  19. Leland B. Yeager (2011). Is the Market a Test of Truth and Beauty?: Essays in Political Economy. Ludwig von Mises Institute. pp. 13–. ISBN 978-1610164214. Archived from the original on 3 January 2014. Retrieved 15 June 2013.
  20. Bagus, Philipp (January 1, 2010). "Austrian Business Cycle Theory: Are 100 Percent Reserves Sufficient to Prevent a Business Cycle?" (PDF). Libertarian Papers. Auburn, AL: Ludwig von Mises Institute. 2 (2). Archived (PDF) from the original on September 27, 2013. Retrieved May 22, 2013. Other Austrians such as ... de Soto (2006) have gone further and advocate a 100 percent reserve banking system ruling out credit expansion altogether.
  21. Rozeff, Michael S. (Spring 2010). "Rothbard on Fractional Reserve Banking: a Critique" (PDF). Independent Review. Oakland, CA: The Independent Institute. 14 (4): 497–512. ISSN 1086-1653. Archived (PDF) from the original on September 27, 2013. Retrieved May 22, 2013.
  22. Jesús Huerta de Soto (2012). Money, Bank Credit, and Economic Cycles (3rd ed.). Ludwig von Mises Institute. ISBN 978-1610163880. Retrieved 4 August 2013.
  23. Gregg, Samuel (Spring 2007). "Review of "Money, Bank Credit, and Economic Cycles"". Markets and Morality. 10 (1): 185–187. Archived from the original on 2014-08-26. Retrieved 2014-08-22.
  24. van den Hauwe, Ludwig (2006). "Review of Jesús Huerta De Soto's Money, Bank Credit, and Economic Cycles". New Perspectives on Political Economy. 2 (2): 136–142. SSRN 2399403.
  25. Larry J. Sechrest, Larry J. Sechrest Book “Free Banking: Theory, History, and a Laissez-Faire Model” Archived 2014-12-16 at the Wayback Machine, Larry J. Sechrest Preface to June 2008 edition published by Ludwig Von Mises Institute, pp. 1–3; originally published by Quorum Books, 1993.
  26. Huerta de Soto, 2012, pp. 141–142.
  27. Andre Azevedo Alves, Jose Moreira, The Salamanca School, from series "Major Conservative and Libertarian Thinkers", Continuum International Publishing Group, 2009, p. 131 Archived 2014-05-11 at the Wayback Machine, ISBN 978-0826429827
  28. Yeager, Leland B. (2001). "The Perils of Base Money" (PDF). The Review of Austrian Economics. 14 (4): 251–266. doi:10.1023/a:1011981013028. S2CID 152548080. Archived (PDF) from the original on 2013-12-03. Retrieved 2013-08-05.
  29. Paul, Ron (October 1, 2009). "The Money Monopoly: How the Federal Reserve Rips You Off". The American Conservative. American Ideas Institute.
  30. Ron Paul, End the Fed, Hachette Digital, Inc., 2009, Chapter, "Origin and Nature of the Fed, ISBN 978-0446568180
  31. "Review of Theory of Economic efficiency Archived 2014-01-09 at the Wayback Machine", Institute of Economic Affairs website, November 12, 2008.
  32. Federico Bauer Rodríguez ¿Por qué la libertad? (I) Archived 2014-01-06 at the Wayback Machine (in Spanish) El Periódico. Retrieved 5 January 2014
  33. LAUDATIO in honour of Professor Jesús Huerta de SOTO from Rey Juan Carlos University, Madrid Archived 2013-10-30 at the Wayback Machine Alexandru Ioan Cuza University. Retrieved 4 January 2014
  34. Also published in German as: Die österreichische Schule der Nationalökonomie : Markt und unternehmerische Kreativität. Wien: Hayek Institut. 2007. p. 152. ISBN 978-3902466037. OCLC 759028166. (trans. from the Spanish by Ingolf Günter Krumm; The international library of Austrian economics series); and in French as: L'école autrichienne : marché et créativité entrepreneuriale. Paris: Institut Charles Coquelin. 2008. p. 157. ISBN 978-2915909166. OCLC 690811169. (trans. from the Spanish by Rosine Létinier; part of the Collection Science économique et liberté series)
  35. Reviewed in: Grassl, Wolfgang (March 22, 2010). "Theory of Dynamic Efficiency. (Book review)". Journal of Markets & Morality. Acton Institute for the Study of Religion and Liberty. Archived from the original on November 6, 2013. Retrieved 14 June 2013. This book contains twenty essays, sixteen of which have already appeared elsewhere during the period 1994–2004. Topics include the methodology and history of economics, entrepreneurship, socialism, nationalism, central banks and free banking, ethics, and liberal social thought (in the European sense of the term).
  36. Reviewed in: Hladík, René (July 1, 2010). "Peníze, Banky a Hospodářské Krize" [Money, Banking and Economic Crisis]. E+M: Ekonomie a Management (in Czech). Technical University Liberec. Archived from the original on November 6, 2013. Retrieved 23 May 2013.
  37. Reviewed in: "Socialism, economic calculation and entrepreneurship (Book review, brief article)". Reference & Research Book News. Portland, OR: Book News, Inc. November 1, 2010.
  38. Also published in Dutch as: Geld, krediet en crisis. Leuven, Den Haag: Acco. 2011. p. 718. ISBN 978-9033480942. OCLC 723961802.; in German as: Geld,Bankkredit und Konjunkturzyklen. Stuttgart: Lucius & Lucius. 2011. p. 624. ISBN 978-3828205321. OCLC 731159974.; in Polish as: Pieniądz, kredyt bankowy i cykle koniunkturalne. Warszawa: Instytut Ludwiga von Misesa. 2011. p. 671. ISBN 978-8392616054. OCLC 804342687. (with coauthors Grzegorz Łuczkiewicz & Mateusz Machaj); and in French as: Monnaie, crédit bancaire et cycles économiques. Paris: l'Harmattan. 2011. p. 558. ISBN 978-2296544512. OCLC 758332334. (trans. from the Spanish by Rosine Létinier; L'Esprit économique. Série Économie formelle.) and Money, bank credit, and economic cycles (in French). Auburn, AL: Ludwig von Mises Institute. 2006. p. 876. OCLC 494633680. (with Melinda A. Stroup, translator) (Reviewed in: Gregg, Samuel (March 22, 2007). "Money, Bank Credit and Economic Cycles (Book Review)". Journal of Markets & Morality. Acton Institute for the Study of Religion and Liberty.
  39. Jesús Huerta de Soto website Archived 2015-07-08 at the Wayback Machine, see Curriculum Vitae, Actividad Investigadora Publicaciones I and II and Otras publicaciones.
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