Business Cycles

Mises described the problem, Hayek proposed the direction, Kirzner explains why the market will not stop. And the market, as so many times before, has already found the first step.

Professor Joseph Salerno traces how Rothbard's mastery of the praxeological method led him to the controversial but logically airtight conclusion that business cycles have a single, exogenous cause and a single cure.

In memory of Roger Garrison, Bob walks through Garrison's famous capital-based macroeconomics diagrams, showing how they translate the Mises-Hayek theory of the boom-bust cycle into the language of modern macroeconomics.

All Austrian economists in my and subsequent generations owe Roger a debt of gratitude.

With a record-height tower and a flooded credit system: 2026 may be when the curse returns. 

The US economy is hooked on easy money and artificially low interest rates. Huge credit expansions are not “stimulating” the economy; they are destroying it.

The US economy is hooked on easy money and artificially low interest rates. Huge credit expansions are not “stimulating” the economy; they are destroying it.

Ever since the Great Depression, most economists have claimed that the key to increasing economic growth is to lower unemployment. However, increasing the savings rate and building a capital structure are the keys to growth—and lower unemployment.

In an attempt to explain business cycles, Milton Friedman came up with a plucked-string analogy. Like all Monetarist theories, however, this also had fatal flaws.

Paul Cwik explains how artificial credit expansion triggers unsustainable booms and inevitable busts.