10 research outputs found
Business cycle: From birth to the Austrian school theory
Approaching the theory of economic cycle is not an issue that comes in hand! We are permitted to make such a statement based on the idea that explanations concerning the business cycle theory are strictly related to how each school of thought was able to understand the system that makes market, with its habitual basic functions, operate; how was the idea of equilibrium understood and, last but not least, which is the role of the state in this entire âstoryâ. Although some of the doctrines tend to insist on a particular factor, considered to be the most important one and also the one that is responsable for triggering the economic crisis, in fact we can talk about a consistent number of factors that include some worth mentioning like monetary expansion, state interventionism, excessive regulation, lack of regulation, low level of consumption, various changes in consumer preferences and so on. The serious problems that economy had to face during the years rise, therefore, many questions that require a thorough and consistent analysis. The limited space that we have at our disposal determines this essay to be considered only a âsuperficialâ investigation of how the economic cycle can be addressed, from various points of view. Throughout this paper we will make a brief doctrinaire promenade starting with the monetary theory, reaching the Keynesian doctrine and finishing with the point of maximum interest, the Austrian School. Exhaustively passing through the theories mentioned above, along with their fundamental ideas about the phenomenon of economic cycles, does not represent the basis for the current paper. The specialized literature has no shortage of such work. The purpose of this research, as we will try to highlight, is to present the main differences that can be noticed between the ideologies that built, over time, their way into the history of economic thought. We are particularly interested in the problem of business cycle and the recurrence of crises.Crisis, business cycle, Austrian School, Keynesian, Monetarist
The Forgotten Austrian Economics Language
In light of the current events, namely the crisis that economy has to face for quite some years now, plenty of questions are raised, not only among specialists in the field but also among ordinary people as they prove to be most impoverished by these imbalances. Thus, this paper aims, as a first objective, to explain, from a general perspective and using an inductive-subjective methodology based on a brief survey as well as on observation, two of the most important causes that, according to the Austrian Business Cycle Theory, are the leading motives for triggering crises. We are referring particularly to an excessive state interventionism manifested throughout its expansionary monetary policy. Secondly, we seek to establish the interconnections between these elements and the case of the Great Depression as well as the current recession. The results we came across point out towards the same pattern designed by the Austrian economists, although the circumstances are, each time, different. Hence, the contribution of this paper consists of handling the details that surround the subject by extracting only the essential aspects regarding the triggering of crises; we refer to the main ideas that need to be underlined for a better comprehension of the topic
How can we anticipate crises?
Every crisis should teach us a valuable lesson. However, it seems that we learn almost nothing since they still
occur from time to time strongly affecting the world economies. The basic question from where we started our research
and to which we tried to answer as clearly as possible is the following: How can we anticipate future crises before they
begin to make their presence felt on the global economic scene? The answer is both simple and handy, as the most
consistent and relevant explanations in this regard come from the Austrian School of economics. We refer, in
particular, to the theory of business cycle. Analyzing this problem, we discovered multiple causes, or better said clues
that might help us anticipate and recognize the onset time of economic recessions. We will focus on two of them,
considered to be the most important ones. The first clue is closely linked to an expansionary monetary policy that led to
a deterioration of credit and to inflation. The second sign that we will be argued in this paper, a sign in close
connection with the first clue, is due to the application of protectionist measures or, in other words, the second cause
was actually the stateâs interventionism
Business cycle: From birth to the Austrian school theory
Approaching the theory of economic cycle is not an issue that comes in hand! We are permitted to make such a statement based on the idea that explanations concerning the business cycle theory are strictly related to how each school of thought was able to understand the system that makes market, with its habitual basic functions, operate; how was the idea of equilibrium understood and, last but not least, which is the role of the state in this entire âstoryâ. Although some of the doctrines tend to insist on a particular factor, considered to be the most important one and also the one that is responsable for triggering the economic crisis, in fact we can talk about a consistent number of factors that include some worth mentioning like monetary expansion, state interventionism, excessive regulation, lack of regulation, low level of consumption, various changes in consumer preferences and so on.
The serious problems that economy had to face during the years rise, therefore, many questions that require a thorough and consistent analysis. The limited space that we have at our disposal determines this essay to be considered only a âsuperficialâ investigation of how the economic cycle can be addressed, from various points of view.
Throughout this paper we will make a brief doctrinaire promenade starting with the monetary theory, reaching the Keynesian doctrine and finishing with the point of maximum interest, the Austrian School.
Exhaustively passing through the theories mentioned above, along with their fundamental ideas about the phenomenon of economic cycles, does not represent the basis for the current paper. The specialized literature has no shortage of such work. The purpose of this research, as we will try to highlight, is to present the main differences that can be noticed between the ideologies that built, over time, their way into the history of economic thought. We are particularly interested in the problem of business cycle and the recurrence of crises
How can we anticipate crises?
Every crisis should teach us a valuable lesson. However, it seems that we learn almost nothing since they still
occur from time to time strongly affecting the world economies. The basic question from where we started our research
and to which we tried to answer as clearly as possible is the following: How can we anticipate future crises before they
begin to make their presence felt on the global economic scene? The answer is both simple and handy, as the most
consistent and relevant explanations in this regard come from the Austrian School of economics. We refer, in
particular, to the theory of business cycle. Analyzing this problem, we discovered multiple causes, or better said clues
that might help us anticipate and recognize the onset time of economic recessions. We will focus on two of them,
considered to be the most important ones. The first clue is closely linked to an expansionary monetary policy that led to
a deterioration of credit and to inflation. The second sign that we will be argued in this paper, a sign in close
connection with the first clue, is due to the application of protectionist measures or, in other words, the second cause
was actually the stateâs interventionism
THE ECOLOGIST SPIRIT UNDERNEATH AUSTRIAN ECONOMIST CLOTHES
Capital is strongly related to growth and development. Unfortunately, nowadays not many are those who actually understand the meaning underneath these connections. Our main concern becomes providing strong proof for the idea according to which a misallocation of capital betrays disastrous consequences, both from a pure economical as well as from an ecological perspective. Thus, the purpose of our paper finds its roots in revealing the answer to the question whether society requires a new economico-ecological mentality oriented towards a sane and efficient resource allocation along the productive process. The response we found is that it desperately does so. Formulating the argument benefits from the Austrian School precepts as it bifurcates into separate paths to follow along the paper. The first one highlights our main assumption according to which Austrian economics are, from a certain perspective, ecological oriented as their capital theory is thoroughly linked to an environmental friendly growth. The second trail entails the development of a plan under the form of possible solutions for escaping the recurrence of imbalances. A considerable part is also allocated to pointing out the main indicators that emphasize the guiding alarm signals: prices and private property
Business cycle: From birth to the Austrian school theory
Approaching the theory of economic cycle is not an issue that comes in hand! We are permitted to make such a statement based on the idea that explanations concerning the business cycle theory are strictly related to how each school of thought was able to understand the system that makes market, with its habitual basic functions, operate; how was the idea of equilibrium understood and, last but not least, which is the role of the state in this entire âstoryâ. Although some of the doctrines tend to insist on a particular factor, considered to be the most important one and also the one that is responsable for triggering the economic crisis, in fact we can talk about a consistent number of factors that include some worth mentioning like monetary expansion, state interventionism, excessive regulation, lack of regulation, low level of consumption, various changes in consumer preferences and so on.
The serious problems that economy had to face during the years rise, therefore, many questions that require a thorough and consistent analysis. The limited space that we have at our disposal determines this essay to be considered only a âsuperficialâ investigation of how the economic cycle can be addressed, from various points of view.
Throughout this paper we will make a brief doctrinaire promenade starting with the monetary theory, reaching the Keynesian doctrine and finishing with the point of maximum interest, the Austrian School.
Exhaustively passing through the theories mentioned above, along with their fundamental ideas about the phenomenon of economic cycles, does not represent the basis for the current paper. The specialized literature has no shortage of such work. The purpose of this research, as we will try to highlight, is to present the main differences that can be noticed between the ideologies that built, over time, their way into the history of economic thought. We are particularly interested in the problem of business cycle and the recurrence of crises
The Forgotten Austrian Economics Language
In light of the current events, namely the crisisthat economy has to face for quite someyears now, plenty of questions are raised, not only among specialists in the field but also amongordinary people as they prove to be most impoverished by these imbalances. Thus, this paper aims, asa first objective, to explain, froma general perspective and using an inductive-subjectivemethodology based on a brief survey as well as on observation, two of the most important causes that,according to the Austrian Business Cycle Theory, are the leading motives for triggering crises. Weare referring particularly to an excessivestate interventionismmanifested throughout itsexpansionary monetary policy.Secondly, we seek to establish the interconnections between theseelements and the case of the Great Depression as well as the current recession. The results we cameacross point out towards the same pattern designed by the Austrian economists, although thecircumstances are, each time, different. Hence, the contribution of this paper consists of handling thedetails that surround the subject by extracting only the essential aspects regarding the triggering ofcrises; we refer to the main ideas that need to be underlined for a better comprehension of the topic