Booms and Busts

The boom-and-bust cycle isn’t limited just to so-called advanced economies. It also has become a way of life in the economies of tropical countries and other emerging economies.

Critics of the Austrian Business Cycle Theory claim that capital investors over time will no longer be fooled by artificially-low interest rates triggered by central banks. However, when central banks push easy money policies, the inflation itself sets the ABCT pattern in motion.

Economic historians usually are mistaken when looking at the causes of the Panic of 1857. Douglas E. French sets the record straight.

Dr. Mark Thornton breaks down why central banks are fleeing Treasuries for physical gold and what the "Skyscraper Curse" signals for a 2026 crash. 

With a record-height tower and a flooded credit system: 2026 may be when the curse returns. 

Net present value (NPV) is a popular decision-making criteria used by firms to make key, crucial choices about how to allocate resources across an economy, but this can be misleading especially when interest rates are manipulated via inflation.

The Fed is cutting its discount rate again, but Americans will be disappointed with the results, as the Fed’s latest action only contributes to the boom-and-bust cycle.

As government continues to engage in reckless actions from inflation to starting wars, people develop shorter time horizons, creating social vacuums. Increased gambling and other irresponsible behaviors then fill the void.

As government continues to engage in reckless actions from inflation to starting wars, people develop shorter time horizons, creating social vacuums. Increased gambling and other irresponsible behaviors then fill the void.

When there is a cascade of failing businesses at one time, it is easy to think of it as an economic contagion that is a by-product of capitalism. Yet, a cluster of business errors can be laid firmly at the feet of government.