Mises Wire
Author:
Mihai Macovei
Online Publish Date:
Efforts to stimulate growth end up hampering growth. The Austrian Theory of the Business Cycle (ATBC), pioneered by Ludwig von Mises, explains this seeming paradox. Government reduction of interest rates below the would-be market rate triggers an expansion of fiduciary credit in the context of fiat currency and fractional-reserve banking. It leads