Business Cycles

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How Government Intervention Triggers Depressions

Business CyclesMoney SupplyProduction Theory

Blog05/21/2020

Thanks to past interventions, the economy is now rife with malinvestments and prices that don't reflect real demand. The solution is to allow deflation and other types of painful readjustment. Otherwise true growth will elude us.

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Ludwig von Mises’s "Circulation Credit" Theory of the Trade Cycle

Booms and BustsBusiness Cycles

Blog05/14/2020

The latest installment in the Understanding Money Mechanics series summarizes the theory of the business cycle originally published in 1912 by Ludwig von Mises and elaborated by Friedrich Hayek.

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Austrian School Scholars Are Right to Be Worried about This Economy

Business Cycles

Blog05/04/2020

Austrian economists do not have crystal balls, but Austrian business cycle theory provides a sure foundation for identifying looming economic crises and exacerbating factors, even if the precise timing of a downturn cannot be known.

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Preface to Anatomy of the Crash

The FedBusiness Cycles

Blog04/18/2020

One of the important aims of the Anatomy of the Crash is to highlight the truly global nature of the monetary policy failings since 2008—not simply critiquing the actions of the Federal Reserve, but their colleagues at the European Central Bank, the Bank of Japan, and elsewhere.

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No, Technology Shocks Aren't Behind Recurring Business Cycles

Business CyclesInterventionismOther Schools of Thought

Blog03/19/2020

Finn Kydland and Edward C. Prescott (KP), the 2004 Nobel laureates in economics think that technological shocks can explain 70 percent of economic fluctuations in postwar US data. Unfortunately their quantitative methods are simplistic and ignore the real problem: central banking.

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The Era of Boom and Bust Isn't Over

Booms and BustsBusiness CyclesCapital and Interest Theory

Blog01/31/2020

Central banks have done nothing to end the boom-and-bust cycle. Instead, their unscrupulous interventions in credit markets just prolong the boom. But it's a huge mistake to assume that bringing market interest rates to zero will create a perpetual boom.

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Money, Expectations, and Economic Growth

Booms and BustsMoney and BanksBusiness Cycles

Blog01/06/2020

Even if the central bank policymakers could implement policies without error, Milton Friedman’s and Robert Lucas’s monetary schemes could not secure stable economic growth.

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A History of Inflationary Money: From 1844 to Nixon

Booms and BustsGlobal EconomyBusiness Cycles

Blog12/11/2019

It is a huge mistake to call the repeating cycle of boom and bust a business cycle. That name implies the bust is the failure of markets and capitalism. But it is really due to monetary and credit inflation licensed and promoted by governments and central banks.

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Central Banks May Be Driving Us Toward More Waste, More Carbon Emissions

The EnvironmentBusiness Cycles

Easy-money policies pushed by central banks may be redirecting wealth away from investment, and toward greater production and consumption of cheap consumer goods. That's not "green."

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