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The role of ideal types in Austrian business cycle theory

In: What is so Austrian about Austrian Economics?

Author

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  • Gene Callahan
  • Steven Horwitz

Abstract

The Austrian theory of the business cycle (henceforth ABC) frequently has been a target for critics of Austrian economics. In particular, a number of economists who are generally appreciative of other Austrian themes have singled out ABC as being, in one such critic's words, an “embarrassing excrescence” marring the otherwise generally sound body of modern Austrian thought.1Despite such criticisms, many Austrian economists persist in forwarding ABC as the best available, or perhaps even the only valid, explanation for the cycles of boom and bust regularly occurring in most modern, national economies.

Suggested Citation

  • Gene Callahan & Steven Horwitz, 2010. "The role of ideal types in Austrian business cycle theory," Advances in Austrian Economics, in: What is so Austrian about Austrian Economics?, pages 205-224, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aaeczz:s1529-2134(2010)0000014013
    DOI: 10.1108/S1529-2134(2010)0000014013
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