Abstract
A recent set of articles (see Michael Bordo 1986; Roger Garrison 1986; Herschel Grossman 1986; Gottfried Haberler 1986; Axel Leijonhufvud 1986 and Leland B. Yeager, 1986) reviews the Austrian theory of the business cycle in comparison to other theories. One of the main issues they consider is the neutrality of disturbances in the money supply, and on this point Thomas Humphrey (1984) is cited as refuting the Austrians’ claim to be unique in that they consider relative price changes (Yeager 1986, p. 382). Humphrey quotes and summarizes several quantity theorists and Monetarists on the real effects of a monetary disturbance and concludes that rather than being distinct, the Austrian theory is quite similar to that of the Monetarists both in its explanation of how money affects the economy and in its policy implications.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Bordo, Michael D. “Austrian Influence on Business Cycle Theory.” Cato Journal 6 (Fall 1986): 455–59.
Garrison, Roger W. “Hayekian Trade Cycle Theory: A Reappraisal.” Cato Journal 6 (Fall 1986): 437–53.
Grossman, Herschel I. “Money, Real Activity and Rationality.” Cato Journal 6 (Fall 1986): 401–08.
Haberler, Gottfried. “Reflections on Hayek’s Business Cycle Theory.” Cato Journal 6 (Fall 1986): 421–35.
Hayek, Friedrich A. Profits, Interest and Investment. London: Routledge and Kegan Paul Ltd., 1939.
Hayek, Friedrich A. “Three Elucidations of the Ricardo Effect.” Journal of Political Economy 77 (March/April 1969): 274–85.
Leijonhufvud, Axel. “Real and Monetary Factors in Business Fluctuations.” Cato Journal 6 (Fall 1986): 409–19.
Mises, Ludwig von. Human Action: A Treatise on Economics, 3rd rev. ed. Chicago: Henry Regnery Co., 1963.
Yeager, Leland B. “The Significance of Monetary Disequilibrium.” Cato Journal 6 (Fall 1986): 369–99.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1990 Springer Science+Business Media New York
About this chapter
Cite this chapter
Clark, J., Keeler, J. (1990). Misconceptions about Austrian Business Cycle Theory: A Comment. In: Rothbard, M.N., Block, W. (eds) The Review of Austrian Economics. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-3454-7_8
Download citation
DOI: https://doi.org/10.1007/978-94-017-3454-7_8
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-017-3456-1
Online ISBN: 978-94-017-3454-7
eBook Packages: Springer Book Archive