Austrian Business Cycle Theory 101

A blast from the past. A prescient article by Dan Mahoney from 2001 about the Austrian Business Cycle Theory and how what the Fed was doing was distorting the credit markets.

Money Quote: "Should a monetary system give the illusion that the time preferences of consumers, as providers of property for production purposes, is smaller than it actually is, then the structure of production thus assembled in such a system is inherently in error. Whatever plans appear to be feasible during the early phase of a boom will, of necessity, eventually be revealed to be in error due to a lack of sufficient property. This is the crux of the Austrian business cycle theory."

http://bit.ly/6eKa2L

A post by Richard Ebeling over at his blog regarding "the Applicability of the Austrian Theory of the Busines Cycle for Analyzing and Interpreting the General Features of the Current Economic Crisis"

http://bit.ly/7iSOok

Austrians rule! Keynesian's drool!

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