Tag Archives: Hayek

Why Bubbles Burst: Austrian Business Cycle Theory

Austrian economists F. A. Hayek and Ludwig von Mises.

Austrian economists F. A. Hayek and Ludwig von Mises.

Good article on Austrian business cycle theory.

“[The austrian economists] answers […] to the question of why economic booms and busts are cyclic events is referred to as the Austrian theory of the business cycle. Their conclusion can be found in the artificial lowering of prices, not of bricks or lumber, per se, but of the price of money itself.”

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