Business Cycles

I am interviewed on Power Trading Radio about the Skyscraper Curse and Cyber Security Issues—Biggest Bank Heist in History!

The world is teeming with skyscraper building from China to London, and a new record-setting skyscraper is planned for 2016 in Saudi Arabia. Will this skyscraper herald the next global economic crisis as Dubai's Burj Khalifa presaged the 2009 crisis?

More evidence the future of Austrian economics is in good hands is Patrick Newman’s excellent piece of scholarship recently published in the QJAE as "The Depression of 1873: An Austrian Perspective."

According to a new report just out by McKinsey, global debt has increased by $57 trillion since the Great Recession, outpacing world GDP growth during this time period.

Baltic Dry Index Sinks to Historic Lows

This article reviews the Fed’s performance with particular emphasis on its contribution to the 2008 crisis and then suggests an alternative policy which, had it been in place would have dampened the most recent boom and bust.

ABSTRACT: The impact of interest rates on investment choices is a key element in both Keynesian and Austrian theories of the business cycle. Fuller (2013) compares the Keynesian Marginal Efficiency of Capital approach to the Austrian Net Present Value approach, claiming that the two give different rankings of investment projects. This comment provides examples to show that this is only true if factor prices are held constant. If factor prices reflect the discounted present value of the project, then the different rankings between the approaches vanishes. This result further highlights a fundamental difference between the Austrian and Keynesian views: factor price stickiness. This difference in assumptions drives the opposing views of monetary policy.

In this fascinating interview, Mark Thornton explains how the Austrian business cycle predicted the housing bubble, and how those cashing in on it