Chapter 15: Juan de Mariana and the Spanish Scholastics

• Subjectivist Tradition: Spanish Scholastics, particularly those associated with the University of Salamanca, developed key economic concepts that would later form the foundation of the Austrian School. This included the subjective theory of value, recognizing that value is determined by individual preferences rather than inherent qualities.

• Diego de Covarrubias y Leyva: "The value of an article does not depend on its essential nature but on the subjective estimation of men, even if that estimation is foolish."

• Dynamic Market Processes: These scholars recognized the dynamic and ever-changing nature of the market and refuted the idea of a static equilibrium.

• Libertarian Leanings: Figures like Juan de Mariana advocated for limited government and individual liberty, arguing against taxation without consent and highlighting the dangers of inflation caused by currency debasement.

• Precursors to Austrian Theory: Chapter 15 establishes a direct intellectual lineage between the Spanish Scholastics and the Austrian School, emphasizing the continuity of their ideas.

Chapter 16: New Light on the Prehistory of the Theory of Banking and the School of Salamanca

• Early Criticisms of Fractional-Reserve Banking: This chapter explores the early debates surrounding banking practices, focusing on the School of Salamanca's analysis of fractional-reserve banking.

• Doctor Saravia de la Calle: "Under no circumstance should the Christian give his monies to these lenders because, if he sins in giving them, as he always sins, he should cease it because it is his own sin."

• Emergence of Currency and Banking School Ideas: The chapter identifies two distinct schools of thought within the School of Salamanca, mirroring the later Currency and Banking School debate:

• Currency School: Advocated for 100% reserve banking, viewing fractional-reserve practices as illegitimate and harmful.

• Banking School: More tolerant of fractional-reserve banking, arguing for its economic benefits as long as prudence was exercised.

• Early Recognition of Bank Money: Luis de Molina, while advocating for fractional-reserve banking, was the first to recognize that bank deposits constitute a significant part of the money supply.

Chapter 17: Human Action as a Textbook of Economics

• A Treatise on Human Action: The chapter focuses on Human Action as a comprehensive treatise on economics, emphasizing its foundation in human action and its rejection of static models and mathematical formalism.

• The Importance of Entrepreneurship: Mises' theory of entrepreneurship is highlighted, stressing the role of entrepreneurs in driving market processes and coordinating economic activity.

• Aprioristic-Deductive Methodology: The chapter delves into Mises' methodological approach, advocating for an aprioristic-deductive methodology based on the self-evident axioms of human action rather than empirical verification.

• Critique of Socialism and Interventionism: Mises' critiques of socialism and interventionism are explored, arguing that they hinder economic calculation and disrupt market coordination.

• Lasting Influence and Contemporary Relevance: The chapter concludes by stressing the enduring influence of Human Action on economic thought and its continued relevance for understanding complex economic phenomena.