Business Cycles

An Austrian and a Keynesian spar on business cycle theory. 

How a Keynesian came to wildly distort the Austrian theory. 

With huge segments of the world economy mired in depression, can we conclude that capitalism has failed or that the market behaves irrationally? That seems to be the consensus among many commentators, so we hear a wide range of calls for government intervention to patch things up.

Ed Shanahan on the significance of the Austrian tradition. 

An Austrian explains why Japan cannot shake off its dreadful recession. 

 Milton Friedman attacks Austrian economics in Barron's, Two responses.

When the IMF declares a country an "economic miracle," look out. A financial crisis cannot be far behind.

President Roosevelt ran against government spending and deficits, but once in office acted like a dictator.

Roosevelt overthrew the traditional limits on government's role and instituted central planning and welfarism in every sector of the economy.

In contrast to conventional wisdom, from Keynesian to monetarist to eclectic, Austrian theory has recently triumphed over its host of detractors in the following ways.

The banking dilemma seems eternal, like the monetary dilemma, the tax dilemma, and the marital dilemma. The essence of the banking dilemma, however, is that the depositors' money is not in the vault awaiting the depositors' decision to withdraw it. Instead it is out on loan or invested in the money market or in mortgage-backed securities.