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Selected Works of Fred E. Foldvary
Article
The Austrian Theory of the Business Cycle
The American Journal of Economics and Sociology (2015)
  • Fred E Foldvary, San Jose State University
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Abstract
The Austrian school theory of the business cycle is based on the proposition that an artificial expansion of the money supply reduces the transaction rate of interest below its natural rate, which stimulates excessive investment in capital goods of long duration, and then when the rate of interest rises back up, these investments stop, and the economy falls into recession.
Disciplines
Publication Date
2015
DOI
10.1111/ajes.12098
Citation Information
Fred E Foldvary. "The Austrian Theory of the Business Cycle" The American Journal of Economics and Sociology Vol. 74 Iss. 2 (2015) p. 278 - 297 ISSN: 0002-9246
Available at: http://works.bepress.com/fred_foldvary/90/