Sunday, May 29, 2016

Friedrich Hayek Explains the Business Cycle

The discussion is specifically about unemployment but Hayek analyzes the Keynesian solution to unemployment in terms of Austrian school business cycle theory and how Keynesian solutions distort the capital-consumption structure of the economy.

For a detailed discussion of the Austrian business cycle theory, see Austrian School Business Cycle Theory.



  1. Inflation also result in the consumption of capital as well.

  2. Nothing about M2, huh? That's what I thought. Maybe you should post a video of yourself talking about the importance of M2 in the ABCT, since you're such the Austrian-know-it-all.

    1. Did you miss the part where Hayek explains that "The General Theory" is a hoax designed by Keynes as a political expedient in an attempt to repair prior British central bank shenanigans going back to WWI? And as such, Keynesian has nothing to do with providing a "cure" for a non-existent market failure.