Quarterly Journal of Austrian Economics

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Capital-Based Macroeconomics: Recent Developments and Extensions of Austrian Business Cycle Theory

  • The Quarterly Journal of Austrian Economics

Tags Business CyclesCapital and Interest Theory

07/30/2014John P. Cochran


Volume 4, No. 3 (Fall 2001)


Professor Garrison’s work in Austrian macroeconomics over the past twenty-plus years has been most influential. Time and Money and its detailed development of a capital-based macroeconomics is the most important of these recent developments. The capital-based approach has the advantage of providing a seamless macroeconomics of the short run, the medium run, and the long run, particularly when compared to current mainstream analysis, which lacks a medium run and has long-run and short-run models that are often in conflict. Cochran and Glahe argue that it is only with a “greater understanding of the forces actually shaping events in a monetary production economy that we can make rational decisions about policy and monetary institutions.”  Time and Money is certainly a major contribution to our further understanding of these complex market processes.

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Cite This Article

Cochran, John P. "Capital-Based Macroeconomics: Recent Developments and Extension of Austrian Business Cycle Theory." The Quarterly Journal of Austrian Economics 4, No. 3  (Fall 2001): 17-25.

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