Business Cycles

Here lie the two key factors that make the current cycle different than the past 2 cycles.

We suggest that by attempting to counter various shocks that are predominantly the product of Fed's own policies, Bernanke's Fed has likely made things much worse as far as real economic fundamentals are concerned.

How did the Mises Institute come to be the publisher of Mises: The Last Knight of Lib

In the Austrian view, the boom-bust cycle is caused by the Fed's maintenance of artificially low interest rates, which causes businesses to expand, hire workers, buy other resources, and so forth, even though these projects are not justified by the true supply of savings in the economy. The greater the "stimulus" the worse the malinvestments.

In the Christian Science Monitor, here is George Selgin:

Despite what critics of the ABCT say, entrepreneurs can't easily avoid the effects of Fed intervention.

James Grant writes in the New York Times today, on cue as

August 2 saw Matthew Beller’s Daily Article “The Coming Second Life Business Cycle,” wh

Recorded at Mises University 2007.

We have today a hybrid of two forms of banking — loan banking (non-inflationary) and deposit banking (inflationary if not 100% reserve holdings).  The cause of booms is the credit expansion by central banks that is not backed by pools of private savings.