In this paper, we study financial foundations of Austrian business cycle theory (ABCT). By doing this, we (1) clarify ambiguous and controversial concepts like roundaboutness and average period of production, (2) we show that the ABCT has strong financial foundations (consistent with its microeconomic foundations), and (3) we offer examples of how to use the flexibility of this approach to apply ABCT to different contexts and scenarios.
Cachanosky, N. and Lewin, P. (2016), "Financial Foundations of Austrian Business Cycle Theory", Studies in Austrian Macroeconomics (Advances in Austrian Economics, Vol. 20), Emerald Group Publishing Limited, pp. 15-44. https://doi.org/10.1108/S1529-213420160000020002Download as .RIS
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