Business Cycles

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How Markets Self-Corrected during the 1819 and 1919–21 Recessions

Booms and BustsKeynesMonetary PolicyU.S. EconomyBusiness Cycles

Blog05/23/2023

With the US economy facing a severe downturn, we should remember that two recessions ended quickly because the government didn't intervene at all.

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Paying the Piper: Time to Clean Up the Latest Malinvestments

Booms and BustsThe FedInflationMonetary PolicyBusiness Cycles

Blog05/02/2023

Austrian business cycle theory points out that easy money leads to malinvestments. Once easy money disappears, the crash begins. Time to clean up malinvested assets.

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The Coming Recession Will Be a Global One

Booms and BustsMonetary PolicyU.S. EconomyBusiness Cycles

Blog03/02/2023

While the Biden White House claims we are on a steady course of prosperity, the more realistic future is that of a global recession.

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Forget the Liquidity Trap—Loose Monetary Policies Cause Recessions

KeynesMonetary PolicyBusiness CyclesMonetary Theory

Blog02/21/2023

At the heart of Keynesian business cycle theory is the so-called liquidity trap. Contra Keynes, however, economies don't falter because a sudden increase in the demand for money.

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The Fed’s Portfolio Is Nonexistent: The Fed Does Not Invest. It Destroys Investments

Booms and BustsThe FedBusiness Cycles

Blog02/04/2023

Economists and pundits mistakenly call the Federal Reserve System's security holdings a portfolio. It is anything but.

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The Modern State Cannot Exist without Fiat Money

U.S. HistoryBusiness CyclesGold StandardMonetary Theory

Blog01/19/2023

Fiat money is the fuel of the modern Leviathan state. If we wish to have freedom, we must have sound money.

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The Economic Super Bowl: 1920–21 versus 1930–31

Booms and BustsEconomic PolicyThe FedHayekBusiness CyclesGold Standard

Blog12/17/2022

By all measures, the economic downturn that began in 1920 was worse than what occurred in 1930, yet the economy recovered quickly in 1921. Why the difference?

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The Corporate Fairy Tale Is Dying as Economic Reality Sets In

Booms and BustsBusiness CyclesCapital and Interest Theory

Blog12/10/2022

For nearly two decades, business, academic, and political elites have spread the fiction that central banks can engineer prosperity by printing more money. Markets now are discrediting that fairy tale.

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Do Falling Prices Cause or Predict a Recession?

Booms and BustsInflationBusiness Cycles

Blog12/05/2022

An upcoming recession likely will lead to falling asset prices. But these price decreases do not cause recessions, but rather are a result of them.

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