The Depression of 1873-1879: An Austrian Perspective

  title={The Depression of 1873-1879: An Austrian Perspective},
  author={Patrick Newman},
  journal={Economic History eJournal},
  • Patrick Newman
  • Published 12 February 2015
  • Economics, History
  • Economic History eJournal
This paper analyzes the period 1867-79 in American economic history from an "Austrian" perspective. The post-Civil War boom, the Panic of 1873, and the subsequent downturn are investigated in light of Austrian Business Cycle Theory (ABCT) and its structure of production framework. This paper shows how recent legislation allowed for monetary inflation and a boom to develop that inevitably turned into a bust. However, since the federal government pursued a policy of relative laissez faire, the… 

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