Quarterly Journal of Austrian Economics

Volume 7, No. 1 (Spring 2004)

The Austrian theory of the business or trade cycle is an intricate blend of monetary theory and capital theory. Mises’s (and Hayek’s) monetary and capital theories differ in both significant and subtle ways from the neoclassical approach. Economists working in the Misesean tradition are still plagued by problems of communication with non-Austrian economists. While the terminology used is similar in both theories, the definition of key terms, the understanding of the nature of the economic problem, and the role of prices, especially prices for the means of production, differ considerably.