A friend of mine is writing a paper at the University of Georgia and he recently asked me:
"From the perspective of the Austrian school, what constitutes a (housing, economic, whatever) crisis? I don't mean the general feeling of panic or anxiety, but what precisely is (and is not) a crisis?"
So what do you guys think? From the Austrian perspective, what exactly defines a "crisis"? Is there a hard & fast definition for it?
I do not believe the term crisis is used in Austrian economics. A crisis (An emotionally stressful event or a traumatic change in one's life) can be an outcome when an economic bubble pops.
If your friend is asking how a housing bubble occurred, the Cato Institute has a good overview.
"From the Austrian perspective, what exactly defines a "crisis"?"
"Oh, I wish I could pray the way this dog looks at the meat" - Martin Luther