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Happened to see this link posted on Wenzel's blog to a very recent research paper from Notre Dame University: http://nd.edu/~jwolff2/Research_files/Lester_Wolff_Austro_VAR_Aug_27.pdf Here's the abstract: Austrian Business Cycle Theory, as espoused by Mises (1912,1949) and Hayek (1935), predicts...
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In my previous post you guys brilliantly answered on why Caplan et al. were wrong in their rebuttal of ABCT regarding their claim of rational expectations. Now, another critique which I found it hard to find any material upon (the Mises Wiki does not really answer on this matter either) the objection...
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I was searching for rebuttals of the common objection by neoclassical economists made against ABCT: That is, how come entrepreneurs foolishly just respond to the lowering of interest rates hence comitting devastating mistakes rather than possessing some level of rational expectations making them understand...
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Is Austrian Business Cycle Theory consistent or are there many different interpretations of the theory?
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So government credit expansion encourages malinvestment, which is typically funneled into long term projects, particularly higher order capital goods, expanding the early stages of the structure of production in the Hayekian triangle. Austrians claim that this is because investment in higher order capital...
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In answering this thread, I discovered this little gem: Both early and recent empirical work has provided some support for Austrian views of boom and bust. 4 Austrian theory suggests that tests involving movements in output magnitudes must be formulated at a suitably low level of aggregation. The thorny...