IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Business cycle: From birth to the Austrian school theory

  • Vieru, Elena Bianca

Approaching the theory of economic cycle is not an issue that comes in hand! We are permitted to make such a statement based on the idea that explanations concerning the business cycle theory are strictly related to how each school of thought was able to understand the system that makes market, with its habitual basic functions, operate; how was the idea of equilibrium understood and, last but not least, which is the role of the state in this entire „story”. Although some of the doctrines tend to insist on a particular factor, considered to be the most important one and also the one that is responsable for triggering the economic crisis, in fact we can talk about a consistent number of factors that include some worth mentioning like monetary expansion, state interventionism, excessive regulation, lack of regulation, low level of consumption, various changes in consumer preferences and so on. The serious problems that economy had to face during the years rise, therefore, many questions that require a thorough and consistent analysis. The limited space that we have at our disposal determines this essay to be considered only a „superficial” investigation of how the economic cycle can be addressed, from various points of view. Throughout this paper we will make a brief doctrinaire promenade starting with the monetary theory, reaching the Keynesian doctrine and finishing with the point of maximum interest, the Austrian School. Exhaustively passing through the theories mentioned above, along with their fundamental ideas about the phenomenon of economic cycles, does not represent the basis for the current paper. The specialized literature has no shortage of such work. The purpose of this research, as we will try to highlight, is to present the main differences that can be noticed between the ideologies that built, over time, their way into the history of economic thought. We are particularly interested in the problem of business cycle and the recurrence of crises.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://mpra.ub.uni-muenchen.de/34124/1/MPRA_paper_34124.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34124.

as
in new window

Length:
Date of creation: 20 Nov 2011
Date of revision:
Handle: RePEc:pra:mprapa:34124
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Klausinger, Hansjörg, 2003. "The Austrians on Relative Inflation as a Cause of Crisis," Journal of the History of Economic Thought, Cambridge University Press, vol. 25(02), pages 221-237, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34124. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.