Business Cycles

Displaying 341 - 350 of 888
Lucas M. Engelhardt

ABSTRACT: The impact of interest rates on investment choices is a key element in both Keynesian and Austrian theories of the business cycle. Fuller (2013) compares the Keynesian Marginal Efficiency of Capital approach to the Austrian Net Present Value approach, claiming that the two give different rankings of investment projects. This comment provides examples to show that this is only true if factor prices are held constant. If factor prices reflect the discounted present value of the project, then the different rankings between the approaches vanishes. This result further highlights a fundamental difference between the Austrian and Keynesian views: factor price stickiness. This difference in assumptions drives the opposing views of monetary policy.

Erwin Rosen Adrián Osvaldo Ravier

This article reviews the Fed’s performance with particular emphasis on its contribution to the 2008 crisis and then suggests an alternative policy which, had it been in place would have dampened the most recent boom and bust.

Carmen Elena Dorobăț

As of this week, when Eurozone price inflation reached negative levels, ECB's Mario Draghi decided to throw caution to the wind and brace “for further measures, which could, if needed, be implemented in a timely manner”. Estimates for the European QE program are around €500 billion, but the overall size and timescale will most likely remain open-ended.

Ryan McMaken
Shawn Ritenour reviews Randall Holcombe's new Austrian econ textbook Advanced Introduction to the Austrian School ofEconomics in Libertarian Papers.  (I interviewed Dr. Holcombe about the book in The Free Market.) 
Mark Thornton

Are Rising Subprime Mortgages a Small Sign of Big Things to Come?

Frank Shostak

The laws of physics can never be absolutely established. For some other law may prove more elegant or capable of explaining a wider range of facts. Hypotheses must be constantly tested. Economics is not like this.

Mark Thornton

The Economic Crash that Cured Itself: A Conversation with James Grant about the Depression of 1921.