Business Cycles

Central banks, and especially the Federal Reserve System, continue to churn up inflation and the boom-and-bust cycles—in the name of "stabilizing" the economy.

While the usual characters praise central banks for supposedly bringing economic stability, Dr. Shostak explains that their presence makes things unstable because they break the relationship between saving and lending.

Keynesian orthodoxy claims government can successfully counter recession through "expansionary" policies. To the contrary, these policies increase the danger to the economy.

For nearly a hundred years, economists have been groping for an explanation for the business cycle, writes Murray Rothbard, while overlooking the Austrian explanation.

Long-standing policy advice based on Austrian business cycle theory would be useful in responding to Keynesian supply shocks—aggregate supply shocks that lead to even larger aggregate demand shocks.

Abstract: This paper endeavors to develop a modern theoretical underpinning of Friedrich August von Hayek’s business-cycle theory

In this interview with Jeff Deist, Dr. Murphy gives us a succinct lesson in the history of money, business cycle theory, and on the origins of monetary inflation. 

Lawrence Summers claims that excess savings and feeble investment led to secular stagnation in advanced economies. But Austrian business cycle theory offers a better explanation. 

Presented at Mises University 2021.

Böhm-Bawerks was a brilliant economist, and we must also remember his example as a principled man of uncompromising integrity who in the political arena unswervingly fought for freedom and free markets.