The Economist recently opined that interest rates don't affect investment. This claim is based on an empirical study that contradicts what we already know: that lower prices lead to more demand. In the end, the problem lies with the researches who fail to account for the behavior of central bankers.
Tom Woods offers a simple 8-minute explanation of Austrian Business Cycle Theory.
Michael Pollaro, Mark Thornton, and I went looking for some good introductory materials to help newcomers understand Austrian Business Cycle Theory
Once interest rates begin to rise — and rise they must, whether as a result of Fed policy or not — the end of the asset price inflation will be at hand. The result will be another financial crisis and accompanying recession.
This lecture by Roger Garrison was presented at the 2012 Mises University in Auburn, Alabama. Includes an introduction by Mark Thornton.
In “The Theory of Money and Credit”, Mises provided the basics for the long-sought explanation for that mysterious and troubling econom
Jeff Deist and David Howden discuss the history of banking in America before 1913 and the entanglements of the Federal Reserve.
This paper identifies merger waves as parts of Austrian-type business cycles. According to Austrian business cycle theory, when loan rates are reduced below their natural level through bank credit expansion, this falsifies the monetary calculation of capitalist-entrepreneurs, and investments are initiated that calculation showed were not profitable before the interest rate reduction.
