The Austrian Theory of Business Cycles: Old Lessons for Modern Economic Policy?
The global economy slowdown that got underway in 2000 and the characteristics of the expansion that preceded it have revived interest in a school of economic thought developed in the first half of the 20th century by a number of Austrian economists, including Ludwig von Mises and Friedrich Hayek. This “Austrian” theory of the trade (or business) cycle, which had its roots in the works of Wicksell and Böhm-Bawerk, claimed that the origin of recessions lay in the interference of monetary authorities in the setting of interest rates.
Por Stefan Erik Oppers
The Austrian Theory of Business Cycles: Old Lessons for Modern Economic Policy?
