Saturday, 13 July 2013

Austrian Business Cycle Theory and the Global Financial Crisis: Confessions of a Mainstream Economist

By Jerry H. Tempelman (2010)

ABSTRACT: Austrian business cycle theory has a legitimate claim to being the most authoritative explanation of the recent global financial and economic crisis. Indeed, many mainstream economists have begun to analyze the crisis, perhaps unwittingly so, in terms that sound as if they were derived directly from the Mises-Hayek-Garrison theory of macroeconomic fluctuations. Even advanced economic research into financial leverage and liquidity does conceptually little more than develop the framework of Austrian business cycle theory.

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