A new working paper on Mises.org: Capital Based Macroeconomics: Boom and Bust in Japan and the U.S. by John Cochran and Noah Yetter (Metropolitan College of Denver)
Some economists and the financial press believe that the U.S. in the 1990s and Japan in the 1980s experienced economic growth driven by a positive productivity shock. The economic growth was accompanied by growth of money and credit aggregates. Proponents of real business cycle considered the money growth benign, while adherents of the natural rate theory viewed it as beneficial because either the price level was stable or inflation rates were extremely low. A capital-based-macroeconomics shows how and why the accompanying growth of money and credit with or without declining interest rates was neither beneficial nor benign.