Quarterly Journal of Austrian Economics

Volume 4, No. 1 (Spring 2001)

In this article, the prime concepts are based on the Mises-Hayek theory of the business cycle.  Using this model as the general framework for analysis, additions and modifications are introduced reflecting theoretical advances and current problems. Free markets and a strict profit-and-loss system are the best ways to signal erroneous action and induce the constant process of corrective adaptation to bring forth efficiency in the allocation of capital.