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

How Consistent Is ABCT?

rated by 0 users
This post has 1 Reply | 2 Followers

Top 500 Contributor
Posts 163
Points 5,275
djussila Posted: Sat, Nov 20 2010 6:32 PM

Is Austrian Business Cycle Theory consistent or are there many different interpretations of the theory? 

Top 500 Contributor
Posts 304
Points 5,160

Is Austrian Business Cycle Theory consistent or are there many different interpretations of the theory? 

There are some less developed versions (Richard von Strigl, for example) and some self-identified Austrians who find problem with it, but as far as I know it is generally accepted. Perhaps the biggest difference of interpretation is that it is not simply that expansion of credits inspires entrepreneurs and capitalists to undertake ventures they otherwise would not have (at the higher interest rate) but that this allows entrepreneur/capitalists who would not have received credit to undertake investments. This partly explains why entrepreneurs don't just adjust for expected inflation, even to the extent that they can and do there are still overconfident bozos out there to try to make money flipping their houses and selling website addresses.

...
  • | Post Points: 5
Page 1 of 1 (2 items) | RSS