About this document
Austrian Business Cycle Theory Explained by Manuel is a document available to read on EtoBox.
The document summarizes the Austrian theory of the business cycle according to economists of the Austrian school. Key points: - The Austrian theory argues that artificial expansion of the money supply by a central bank reduces interest rates below the natural rate, stimulating excessive investment in long-term capital goods projects. - When interest rates rise back up, these long-term investments are no longer profitable and stop, causing a recession. - The natural interest rate is determined by indivi
- Author
- Manuel
- Language
- EN