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Philip Ruys

A Development of the Theory of the Ricardo Effect

Quarterly Journal of Austrian Economics

Author: Philip Ruys

Online Publish Date: April 2, 2018

Category: Business Cycles, Production Theory

[ Full Issue of the Quarterly Journal of Austrian Economics 20, no. 4 (2017)] ABSTRACT: According to Hayek’s “theory of the Ricardo Effect” there is a “decline of investment” on the part of the consumer goods industries that starts halfway through the cyclical upswing. This “decline of investment” then gradually leads to the “scarcity of capital”

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