Business Cycles

The Keynesian multiplier is a concept embedded in macroeconomic thought, policy, textbooks, and widely taught in classrooms.

Malinvestments from the business cycle are usually hard to detect, easily concealed, or quickly converted to new uses.

The Economist recently opined that interest rates don't affect investment. This claim is based on an empirical study that contradicts what we already know: that lower prices lead to more demand. In the end, the problem lies with the researches who fail to account for the behavior of central bankers.

PressTV Reports:

Tom Woods offers a simple 8-minute explanation of Austrian Business Cycle Theory.

The Swedish central bank Riksbanken has

Michael Pollaro, Mark Thornton, and I went looking for some good introductory materials to help newcomers understand Austrian Business Cycle Theory

Once interest rates begin to rise — and rise they must, whether as a result of Fed policy or not — the end of the asset price inflation will be at hand.  The result will be another financial crisis and accompanying recession.

This lecture by Roger Garrison was presented at the 2012 Mises University in Auburn, Alabama. Includes an introduction by Mark Thornton.

In “The Theory of Money and Credit”, Mises provided the basics for the long-sought explanation for that mysterious and troubling econom