Quarterly Journal of Austrian Economics
Author:
Lucas M. Engelhardt
Online Publish Date:
Volume 15, No. 2 (Summer 2012) Austrian business cycle theory has been criticized on the basis of “rational expectations.” That is, reasonably high quality entrepreneurs—which are required for economic growth—should be able to foresee the business cycle and thereby avoid making malinvestments . As noted by Evans and Baxendale (2008), this