Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

What Exactly is a "Crisis"?

rated by 0 users
Answered (Not Verified) This post has 0 verified answers | 2 Replies | 1 Follower

Not Ranked
10 Posts
Points 560
Phriend posted on Wed, Dec 1 2010 11:44 AM

Hi everyone,

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?

  • Filed under:
  • | Post Points: 35

All Replies

Top 150 Contributor
659 Posts
Points 13,305
Gero replied on Wed, Dec 1 2010 12:33 PM

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.

  • | Post Points: 5
Top 500 Contributor
130 Posts
Points 1,585

"From the Austrian perspective, what exactly defines a "crisis"?"

Legal plunder!  

"Oh, I wish I could pray the way this dog looks at the meat" - Martin Luther

  • | Post Points: 5
Page 1 of 1 (3 items) | RSS