Empirical Evidence on the Austrian Business Cycle Theory

@article{Keeler2001EmpiricalEO,
  title={Empirical Evidence on the Austrian Business Cycle Theory},
  author={J. Keeler},
  journal={The Review of Austrian Economics},
  year={2001},
  volume={14},
  pages={331-351}
}
  • J. Keeler
  • Published 2001
  • Economics
  • The Review of Austrian Economics
  • The Austrian business cycle theory suggests that a monetary shock disturbs relative prices, such as the term structure of interest rates, systematically altering profit rates across economic sectors. Resource use responds to those changes, generating a cyclical pattern of real income. The divergence of the interest rate structure, from the previous and unchanged time preferences, means that the expansion is unsustainable and must end in recession. Quarterly data for eight U.S. business cycles… CONTINUE READING
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