Austrian Business Cycle Theory: A Basic Model

Pavel Potuzak
Additional contact information
Pavel Potuzak: Prague University of Economics and Business

Chapter Chapter 5 in Austrian Theory of Capital and Business Cycle, 2022, pp 67-83 from Springer

Abstract: Abstract This chapter introduces Austrian business cycle theory. A new model examines the lengthening of production processes initiated by a monetary shock. The resulting dynamics of the economy resemble the paths set up by a fall in time preference. However, the model shows that some processes cannot be completed and will be abandoned. The model explores forced saving at the peak of the economic boom and the partial destruction of capital in the downturn phase of the cycle.

Keywords: Austrian business cycle; Heterogenous capital; Monetary shock (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-18728-5_5

Ordering information: This item can be ordered from
http://www.springer.com/9783031187285

DOI: 10.1007/978-3-031-18728-5_5

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().