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The upper turning point in the Austrian business cycle theory
- Source :
- Microsoft Academic Graph
- Publication Year :
- 2020
- Publisher :
- Springer Science and Business Media LLC, 2020.
-
Abstract
- This paper defends the relevance of Austrian Business Cycle theory (ABCT) within a fiat money regime, by providing an answer to whether a constant rate of credit expansion necessarily leads to a boom-bust cycle. We claim that this scenario has two potential outcomes, (1) a change in money demand brings the economy back towards equilibrium or (2) the economy will shift to a sub-optimal but still sustainable path. We identify capital heterogeneity effects and the Ricardo effect as distinctly Austrian explanations for an upper turning point, even in a fiat money regime.
- Subjects :
- 060106 history of social sciences
Keynesian economics
Fiat money
05 social sciences
06 humanities and the arts
Constant rate
Capital (economics)
0502 economics and business
Path (graph theory)
Relevance (law)
0601 history and archaeology
Turning point
Austrian business cycle theory
050207 economics
General Economics, Econometrics and Finance
Public finance
Subjects
Details
- ISSN :
- 15737128 and 08893047
- Volume :
- 35
- Issue :
- 0889-3047
- Database :
- OpenAIRE
- Journal :
- The Review of Austrian Economics
- Accession number :
- edsair.doi...........a04049c28cbfa67ffe93e4a471f0bf9d