Austrian Theory of Capital and Business Cycle

This book explores Austrian capital theory and Austrian business theory from the perspective of modern economics. Sustainable change within the production structure is examined in relation to time preference, the Böhm-Bawerkian theory of capital and interest, and the Hayek Triangle. In turn, the impact of monetary shocks and boom-bust cycles is detailed, with a particular focus on the Ricardo Effect, dynamics of money supply, and the natural rate of interest. This book aims to present a new framework for Austrian economics that will make these ideas applicable to both mainstream economic models and modern economists. It will be relevant to students and researchers interested in the history of economic thought and the political economy.

Presents recommendations for monetary policy based on the Austrian business cycle theory Expands the Austrian approach to economics to make it more applicable to modern economics Clarifies inconsistencies within Austrian economics through the use of a new graphical apparatus

Auteur

Pavel Potuzak is Assistant Professor at the Prague University of Economics and Business.

Contenu

1. Introduction.- 2. The Austrian Theory of Capital.- 3. The Böhm-Bawerkian Theory of Capital and Interest.- 4. The Hayek Triangle.- 5. Impact of the Decrease in Time Preference on the Structure of Production.- 6. Possibility of Eternal Growth and Comparison with the Neoclassical Growth Model.- 7. The Austrian Business Cycle Theory.- 8. Exogenous Shock to the Money Supply and the Business Cycle.- 9. The Ricardo Effect.- 10. Dynamics of the Money Supply.- 11. Technological Shock and the Endogenous Response of the Money Supply.- 12. The Natural Rate of Interest and the Natural Output.- 13.Conclusions. <p