{"id":29563,"date":"2018-01-10T07:48:18","date_gmt":"2018-01-10T12:48:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29563"},"modified":"2018-01-10T07:48:18","modified_gmt":"2018-01-10T12:48:18","slug":"americas-great-depression-and-austrian-business-cycle-theory-2","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29563","title":{"rendered":"America’s Great Depression and Austrian Business Cycle Theory"},"content":{"rendered":"
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AMERICA\u2019S GREAT DEPRESSION AND AUSTRIAN BUSINESS CYCLE THEORY\u00a0<\/span><\/a><\/h3>\n<\/div>\n<\/header>\n
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When Murray Rothbard\u2019s\u00a0America\u2019s Great Depression<\/i>\u00a0first appeared in print in 1963, the economics profession was still completely dominated by the Keynesian Revolution that began in the 1930s. Rothbard, instead, employed the \u201cAustrian\u201d approach to money and the business cycle to explain the causes for the Great Depression, and to analyze the misguided and counterproductive policies that were followed in the early 1930s, which, in fact, only intensified and prolonged the economic downturn.<\/p>\n

To many of the economists in the early 1960s, Rothbard\u2019s \u201cAustrian\u201d approach seemed out-of-step with the then generally accepted textbook, macroeconomic approach that focused on a highly \u201caggregate\u201d analysis of economic changes and fluctuations on general output and employment as a whole. There was also the widely held presumption that governments could easily maintain economy-wide growth and stability through the use of a variety of monetary and fiscal policy tools.<\/p>\n

Mises, Hayek and the Austrian Theory of Money and the Business Cycle<\/b><\/p>\n

However, in the early and middle years of the 1930s, the Austrian explanation of the Great Depression was at the forefront of the theoretical and policy debates of the time. Ludwig von Mises (1881-1973), first developed this \u201cAustrian\u201d theory of the causes of inflations and depressions in his book,\u00a0The Theory of Money and Credit<\/i>\u00a0(1912; 2nd revised ed., 1924) and then in his monograph,\u00a0Monetary Stabilization and Cyclical Policy<\/i>\u00a0(1928).<\/p>\n

But its international recognition and role in the business cycle debates and controversies in the 1930s were particularly due to Friedrich A. Hayek\u2019s (1899-1992) version of the theory as presented in his works,\u00a0Prices and Production<\/i>\u00a0(1932)\u00a0Monetary Theory and the Trade Cycle\u00a0<\/i>(1933), and\u00a0Profits, Interest and Investment<\/i>\u00a0(1939). A professor of economics at the London School of Economics throughout the 1930s and 1940s, Hayek was, at the time, considered by many to be the main competitor against John Maynard Keynes\u2019s \u201cNew Economics\u201d that emerged out of Keynes\u2019s 1936 book,\u00a0The General Theory of Employment, Interest and Money<\/i>.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

AMERICA\u2019S GREAT DEPRESSION AND AUSTRIAN BUSINESS CYCLE THEORY\u00a0 When Murray Rothbard\u2019s\u00a0America\u2019s Great Depression\u00a0first appeared in print in 1963, the economics profession was still completely dominated by the Keynesian Revolution that began in the 1930s. Rothbard, instead, employed the \u201cAustrian\u201d approach to money and the business cycle to explain the causes for the Great Depression, and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2282,7380,11738,383,467,966,545,15766],"class_list":["post-29563","post","type-post","status-publish","format-standard","hentry","category-economics","tag-austrian-business-cycle","tag-cobden-centre","tag-f-a-hayek","tag-great-depression","tag-keynesian-economics","tag-ludwig-von-mises","tag-murray-rothbard","tag-richard-m-ebeling"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29563"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29563\/revisions"}],"predecessor-version":[{"id":29564,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29563\/revisions\/29564"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}