9. Inflation and the Business Cycle: The Collapse of the Keynesian Paradigm
From the book For A New Liberty: The Libertarian Manifesto, as narrated by Jeff Riggenbach.
From the book For A New Liberty: The Libertarian Manifesto, as narrated by Jeff Riggenbach.
Published in Economica, May 1940.
Loan banking is non-inflationary. Interest rates on loans are merely reflective of price spreads. All speculation, on the free-market, is self-correcting and speeds adjustment, rather than cause economic trouble.
Why do we have booms and recessions? This paper to explores the Austrian explanation of the business cycle and applies that theory to the recession of 1990-1992.