Tags » Austrian Business Cycle Theory

Broken clock? Or superior explanation?

The Austrian school of economics and its proponents were among the few commentators who successfully called the Global Financial Crisis of 07/08, with prominent examples being Ron Paul and Peter Schiff. 454 more words

Economics

Milton Friedman's plucking model of the business cycle

Friedman (1993) proposed a model of the depth of recessions and steepness of recoveries built on two empirical regularities:

  1. output is on average below a ceiling defined by supply capacity and tends back to this ceiling; and…
  2. 714 more words
Macroeconomics