Reply To: Austrian Business Cycle


ABCT, like all economic theory, gives us the general cause-and-effect structure of human action and interaction. To understand the particular, concrete aspects of human action and interaction requires human judgments, which vary from one person to another. Even if all entrepreneurs understood ABCT, each of them would have a different anticipation of how monetary inflation and credit expansion will be manifest in the particulars of time and place. Given that there is a spectrum of entrepreneurs from superior to inferior, the boom-bust will result from monetary inflation and credit expansion.

Take a look at Lucas Engelhardt’s article: