The upper turning point in the Austrian business cycle theory |
| |
Authors: | Evans Anthony J Cachanosky Nicolás Thorpe Robert |
| |
Institution: | 1.Department of Law, Economics, and Humanities, ESCP Business School, 527 Finchley Road, Hampstead, London, NW3 7BG, UK ;2.Department of Economics, Metropolitan State University of Denver, Campus Box 77, P.O. Box 173362, Denver, CO, 80217, USA ;3.Independent scholar, Limerick, Ireland ; |
| |
Abstract: | This paper defends the relevance of Austrian Business Cycle theory (ABCT) within a fiat money regime, by providing an answer to whether a constant rate of credit expansion necessarily leads to a boom-bust cycle. We claim that this scenario has two potential outcomes, (1) a change in money demand brings the economy back towards equilibrium or (2) the economy will shift to a sub-optimal but still sustainable path. We identify capital heterogeneity effects and the Ricardo effect as distinctly Austrian explanations for an upper turning point, even in a fiat money regime. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|