The Drama Revisited

van den Hauwe, Ludwig (2000): The Drama Revisited. Published in: The Quarterly Journal of Austrian Economics , Vol. Vol. 3, No. No. 2 (Summer) (June 2000): pp. 63-79.

Abstract

Capital-based business cycle theory identifies monetary mismanagement as a major source of economy-wide distortions in the intertemporal allocation of resources by focusing on the relative-price effects - and the corresponding quantity adjustments - of a monetary disturbance, as compared to tracking the movements in macroeconomic aggregates that conceal those relative-price effects. It thus gives us a superior understanding of the real coupling between the short-run and the long-run macroeconomic pictures and of the nature of business cycles.

• Item Type: MPRA Paper
• Language: English
• Keywords: Business Cycle Theory; Capital-based macroeconomics; Hayek-Keynes Debate
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E00 - General

References

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