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Financial Foundations of Austrian Business Cycle Theory

Studies in Austrian Macroeconomics

ISBN: 978-1-78635-274-3, eISBN: 978-1-78635-273-6

Publication date: 28 April 2016


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, Leeds, pp. 15-44.



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