Tags » Austrian Business Cycle Theory

Recession Unemployment Data Fits Austrian Theory

I just wrote a piece reviewing the Austrian Business Cycle Theory, Hayekian Triangle (mostly for my own understanding), but I wanted to run a central feature of the theory across some data. 403 more words

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Will Iceland's Sovereign Money Proposal End Economic Crises?

A recent proposal out of Iceland has been making the waves around economics blogosphere. In it, Frosti Sigurjonsson critiques the current fractional-reserve banking system and proposes instead a system he calls “Sovereign Money”. 2,028 more words


Skyscrapers in the business cycle

The world is in the middle of a skyscraper boom. Does this augur badly for the world economy? econ.st/1MgAQrF http://t.co/V96FedP97b
The Economist (@EconEconomics) March 29, 2015


Broken clock? Or superior explanation?

The Austrian school of economics and its proponents were among the few commentators who successfully called the Global Financial Crisis of 07/08, with prominent examples being Ron Paul and Peter Schiff. 454 more words


Milton Friedman's plucking model of the business cycle

Friedman (1993) proposed a model of the depth of recessions and steepness of recoveries built on two empirical regularities:

  1. output is on average below a ceiling defined by supply capacity and tends back to this ceiling; and…
  2. 714 more words