Introduction

Part 1

The Foundation
of Economic Growth

BEFORE WE CAN UNDERSTAND HOW an economy “goes wrong,” we first need to understand how an economy “goes right.”

Part 2

Creating a Business Cycle Model

PRELIMINARIES

Part 3

Advanced Considerations

Conclusion

IN PART 1, WE EXAMINED ECONOMIC growth and how an economy “goes right.” The “magic” formula for economic growth is not magic. The economy does not grow automatically. It requires the coordination of millions and millions of people every day.

Further Reading

ECONOMIC GROWTH

Ayau, Manuel F. 2007. Not a Zero-Sum Game: The Paradox of Exchange. Guatemala City, Guat.: Universidad Francisco Marroquín. https://mises.org/library/not-zero-sum-game-paradox-exchange.

Mises, Ludwig von. 1980. “Captial Supply and American Prosperity.” In Planning for Freedom and Sixteen Other Essays and Addresses, 195–214. 4th ed. South Holland, Ill.: Libertarian Press. Speech first delivered in 1952.

References

Abrams, M. A. 1934. Money and a Changing Civilisation. London: John Lane the Bodley Head.

Ayau, Manuel F. 2007. Not a Zero-Sum Game: The Paradox of Exchange. Guatemala City, Guatemala: Universidad Francisco Marroquín. https://mises.org/library/not-zero-sum-game-paradox-exchange.

Böhm-Bawerk, Eugen von. 1959. Capital and Interest: Three Volumes in One. Translated by George D. Huncke and Hans F. Sennholz. South Holland, Ill.: Libertarian Press.

INDEX

Compiled by Roger Bissell

Abrams, M. A., 49

acquisitions, 44. See also mergers

aggregate spending, 48

Austrian School of economics, 10, 16, 42, 48

Austrian business cycle theory (ABCT), 18, 35, 39n13, 45, 45n17, 46–47, 47n1, 48, 55, 58. See also business cycle

Austrian model, 7, 18, 26, 48

Ayau, Manuel F., 11

Böhm-Bawerk, Eugen von, 48

boom, 16, 34, 36–38, 40, 42–43, 45, 55–56

borrower, 26–30, 33, 54, 56 borrow, borrowing, 28–30, 33–34

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