Quarterly Journal of Austrian Economics

Does Austrian Business Cycle Theory Help Explain the Dot-Com Boom and Bust?

The Quarterly Journal of Austrian Economics

Volume 6, No. 2 (Summer 2003)


Austrian business cycle theory (ABCT), we contend, is essential to understanding the recent boom and bust cycle in the American (and, to a great extent, the global) economy. That does not mean that every recent macroeconomic event is explained by ABCT. For instance, exchange rate manipulation (e.g., the Reverse Plaza Accord) is not a part of standard ABCT, yet it played a key part in the global macroeconomic picture of recent years. However, as long as central banks continue to engage in episodic credit expansion, we believe that ABCT remains a vital component in the macroeconomist’s tool chest.


Callahan, Gene, and Roger W. Garrison. “Does Austrian Business Cycle Theory Help Explain the Dot-Com Boom and Bust?” The Quarterly Journal of Austrian Economics  6, No. 2 (Summer 2003): 67–98.

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