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Financial Crises and Monetary Policy Interventions in the View of the Austrian School

Author

Listed:
  • Ciortescu Elena

    (Faculty of Economics and Business Administration, “Al. I. Cuza” University of Iasi)

  • Apostoaie Marius Constantin

    (Faculty of Economics and Business Administration, “Al. I. Cuza” University of Iasi)

Abstract

In our attempt to understand the causes and consequences of the most critical international financial crisis of the 21st century which, besides crushing world economies, questioned the bases of the mainstream economic theories, we focused our attention on the solutions provided by the Austrian School’s representatives (in doing that we have nevertheless tried to avoid prejudices). According to them, the reckless policy of artificial credit expansion promoted by the monetary authorities represents the major cause of the economic and financial crises as well as of recurrent recessions. Our study aims to provide an enumeration (of course, not an exhaustive one) of the causes of the financial crises, from the Austrian School perspective, but also draws attention to the inevitable political and social consequences of the interventionist policy in the economy, in general, and in the banking system, in particular.

Suggested Citation

  • Ciortescu Elena & Apostoaie Marius Constantin, 2012. "Financial Crises and Monetary Policy Interventions in the View of the Austrian School," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 1032-1037, Decembre.
    • Handle: RePEc:ovi:oviste:v:xii:y:2012:i:2:p:1032-1037
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    More about this item

    Keywords

    the Austrian School; financial crisis; central banks; monetary policy.;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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