Mr. Hayek and the Classics; A Suggested Interpretation of the Business-Cycle theory in Prices and Production

Herger, Nils (2021). Mr. Hayek and the Classics; A Suggested Interpretation of the Business-Cycle theory in Prices and Production. The quarterly journal of Austrian economics, 24(1), pp. 79-109. Mises Institute 10.35297/qjae.010087

Preview

Text 22179-mr-hayek-and-the-classics-a-suggested-interpretation-of-the-business-cycle-theory-in-_prices-and-production_.pdf - Published Version Available under License Creative Commons: Attribution (CC-BY). Download (5MB) | Preview

This paper endeavors to develop a modern theoretical underpinning of
Friedrich August von Hayek’s business-cycle theory as published during the Great
Depression in his book Prices and Production. According to Hayek, economic cycles are
caused by monetary shocks, which distort the relative-price schedule across economic
sectors. Possible consequences of these price distortions, which are also called “Cantillon
effects,” include malinvestment and an unsustainable production structure, which
sooner or later has to be corrected by a recession. It turns out that this type of economic
fluctuation can be condensed into a simple two-sector overlapping generations model.

Interest & Impact

Downloads

107 since deposited on 28 Jan 2022
58 in the past 12 months

Citations

5 Citations in Web of Science ®
6 Citations in Scopus

Search

in Google Scholar™

Services

Actions (login required)

Edit item

Actions (login required)

Edit item