Austrian Business Cycle Theory
Index
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
business cycle, 7, 9, 15–17, 24, 35, 38, 43, 45–46, 47n1, 49, 58
Cachanosky, Nicolás, 49
capital complementarity. See under complements and substitutes
capital. See under goods. See also capital goods, kinds of.
capital goods, kinds of, 19
capital equipment (longer-lived, fixed), 13–14, 19–21, 23, 28, 42, 48–51, 55
financial capital, 19–20, 23. See also financial capital, types of
intermediate capital (goods in process), 19–20, 22–23, 49
capital structure, 38, 44–45, 48, 55
central bank, 35, 37, 40, 58
Cochran, John P., 38n11
complements and substitutes, 50–51, 55
capital complementarity, 19n4
substitutability, 19n4
Congress, 44, 44n16
consumer, consumption, consume, consuming, 13–14, 18–20, 22, 25, 27–30, 32–34, 36–38, 41, 45, 47–48, 51, 54–55, 57. See also savings-consumption ratio. See also under goods
consumer spending, consumption spending, 29–30, 47
cost of goods sold, 45
Council of Economic Advisors, 58
credit crunch, 18, 39n14, 40
Cwik, Paul F., 39n14
debt. See financial capital, types of
demand curve, 22, 27, 32, 36
Democrat, 44n16
disequilibrium, 38, 40. See also boom; dueling structure of production
monetary disequilibrium theory, 47n1
dual-purpose items, 23, 51
dueling structure of production, 36, 38, 38n11, 41
duration (finance tool), 49, 49n2
dynamic stochastic general equilibrium (DSGE), 9–10
economic analysis (mainstream), 29
economic growth, 14, 25–26, 31–33, 42–44, 47, 57
“magical formula” for, 13–14, 28, 43, 57
economy, 9–11, 14–18, 20, 23–25, 28, 30, 32, 34–35, 37–39, 39n14, 40, 42–45, 47–49, 51–53, 56–58
employment (full), 28, 30, 34, 48
endogenous change, 35. See also exogenous change
entrepreneur, 32–34, 37–40, 49–50, 52, 54–57
entrepreneurial “cluster of errors,” 15, 39, 45
equilibrium, 9–10, 12, 15, 27–29, 32–35, 50
equity. See financial capital, types of
exogenous change, exogenous shock, 9–10, 35. See also endogenous change
expansionist, expansionary monetary policy, 25, 35, 37, 39–40, 42–43, 58
exports, export spending (net), 30, 47
federal funds rate, 37, 40
Federal Reserve, 9
fiat money, 35. See also money
financial capital, types of, 55
debt, 55
equity, 55
preferred stock, 55
Garrison, Roger W., 18
Garrisonian model of macro-economy, 24, 28–29
goods, 19, 24, 24n6, 35n10, 50–51 and services, 14, 20, 57–58
capital goods, 14, 20, 41, 48–49. See also capital goods, kinds of
civilian and wartime goods, 24, 24n6
consumer goods (present goods), 12, 19, 21, 23–26, 28–30, 33–34, 36, 38, 41, 48, 54
early-stage and late-stage goods, 30–31
input goods, 39
investment goods (future goods), 12, 24–26, 28–30, 33–34, 36, 38, 41, 48
government, 9, 33, 35, 45, 58
government spending, 14, 29, 47
U.S. government, federal government, 42, 44
Great Depression (1929–39), 44. See also business cycle; recession
gross domestic product (GDP), 17, 29–30, 47
Haberler, Gottfried, 24n6
Hayek, F. A., 14, 16n2, 49
inflation (monetary), 14, 16, 43n15, 52
inflation premium, 52
inflation risk, 53
interest rate, 26–29, 32–33, 35–42, 52, 55–56. See also under time preference
investor, investment, 13–14, 18, 25–28, 31n9, 32, 34, 36–38, 48, 50, 52, 55. See also under goods
invest, investing, investment spending, 28–30, 34, 36, 40, 47, 56–57
Keynesianism, Keynesian model,
Keynesian theory, 7, 14, 47–48
Keynesians, 48
Kirzner, Israel M., 49
labor. See under original factors of
production, types of
Lachmann, Ludwig M., 49
Lewin, Peter, 49
liquidation, 16, 18, 40, 42–45, 55.
See also malinvestment
liquidity, 52
liquidity preference, 53
liquidity premium, 52–53
loans, 52, 54–55
loanable funds, 26–30, 32–36, 40–41
loanable funds market, 18, 26–30, 33–34, 36, 41, 47, 52, 58
macroeconomics, macroeconomists, macroeconomic theory, macroeconomy, 7, 9–10, 15–16, 18, 28–29, 33, 45, 47–49, 53. See also microeconomics
malinvestment, 17, 37, 40, 42–45
maximum potential output, 24
maximum sustainable output, 24–25
Menger, Carl, 48
mergers, 44
microeconomics, 10, 31. See also macroeconomics
Mises, Ludwig von, 16nn1–2, 38, 43n15, 49
money, 13–15, 15–16n1, 16, 20, 35–37, 41, 48, 52, 58
money supply, 18, 35, 39 43n15
natural resources. See under original factors of production, types of
net present value (NPV), 55
objective productivity factors, 26–27 opportunity cost of financial capital, 11, 22, 50
opportunity cost of debt (RD), 55
opportunity cost of equity (RE), 55
opportunity cost of preferred stock (RPS), 55
original factors of production, types of, 20
labor, 19–21, 48
natural resources, 13, 19–20, 48
time, 13, 15–16, 19–23, 29–34, 41–42, 48–49
preferred stock. See financial capital, types of
prices, 12, 14, 16, 22, 39, 39n14, 40, 42, 49, 57–58 price system, 57
production possibilities frontier (PPF), 18, 24, 24n6, 25–26, 28–30, 33–34, 36–37, 41–42, 48
production, productivity, 11–14, 16, 19–24, 24n6, 26–28, 30–32, 36, 39n14, 41, 48–51, 54
marginal productivity, 28
productive assets, productive capital, 42
productive capability, capacity, 20, 41–42
pure time preference theory of interest rates (PTPT), 26
recession, 18, 25, 40–45, 47–48, 51, 56. See also business cycle; Great Depression
1920–21 recession, 43–44, 44n16
2007–9 recession, 9, 16, 31n17, 40, 42–44
recursive loops, 23, 51
rent (return), 28
Republican, 44n16
resource crunch, 18, 40
risk structure of interest rates (RSIR), 52, 55
Rothbard, Murray N., 15, 31n9, 53, 58
Samuelson, Paul, 24, 24n6
saver, 14, 27–30, 33, 36, 41
saving, 13–14, 25, 28–29, 32, 34, 36–37, 45.
savings-consumption ratio, 38
“soft landing,” 40
stimulus, stimulant, stimulate, stimulating, 17–18, 45, 55
Strigl, Richard von, 49
structure of production (SOP), 18–20, 22–23, 28–31, 31n9, 32–34, 36–38, 41–42, 48–51, 54–55
subjective preferences, subjective valuations, 22, 57. See also under time preference
subjective theory of capital value, 48
substitutability, 19n4. See under complements and substitutes
supply curve, 22, 27, 33
tax cuts, 45
term structure of interest rates (TSIR), 52–55
time. See under original factors of production, types of
time preference, 26, 26n7, 28, 36, 48, 53. See also pure time preference theory of interest rates
rate of time preference, 28. See also interest
subjective time preferences, 26–28, 36, 48
US Treasury securities, 53
valuing capital, 49-50
Veryser, Harry C., 45n17
weighted average cost of capital (WACC), 55
Wilson, Woodrow, 44n16
Woods, Thomas E., 45n17
yield curve, 39n13, 53-54, 56
