Business Cycles

It should be clear from the articles in this book that the Austrian School is thriving. Per Bylund has rendered a great service in bringing the scholarship in A Modern Guide to Austrian Economics to our attention.

Böhm-Bawerk shows us that the study of human action and the economy in general goes beyond the simple paradigm of the financial and monetary world. Economics is built into all human experience.

One of the unique features of Austrian economics is a coherent and consistent theory of business cycles. To understand business cycles, one must understand the role that interest rates play in the economy.

Bob walks through diagrams from Hayek's famous LSE lectures to explain the Austrian view of the boom-bust cycle.

Perhaps John Maynard Keynes' best con job was convincing people that a growing economy needs inflation, lots of inflation. As David Gordon points out, however, Ludwig von Mises eloquently explained why inflation undermines the free market economy.

David Glasner shares his perspectives on the famous Sraffa-Hayek debate, a topic on which he has expressed disagreement with Bob in print.

As the Federal Reserve engineers one financial bubble after another, we are reminded that the Austrian Business Cycle Theory explains what is happening and how there is a better way. 

As the Federal Reserve engineers one financial bubble after another, we are reminded that the Austrian Business Cycle Theory explains what is happening and how there is a better way. 

What enables risky investment? What encourages excessive borrowing? What keeps interest rates low, even while there is a frenzy to borrow?

The concept of economic calculation is vitally important to understanding our modern economy, yet few people— and especially economists—comprehend that it even exists.