(Prepared by Timothy Terrell)
Beveridge, Lord William, 100
Böhm-Bawerk, Eugen von, 9, 27, 111
Business cycle
Austrian theory of, 7–10, 17–21, 25–35, 27n, 37–64, 81–91, 111–20
Currency school theory of See Currency school, British Keynesian theory of, 21, 22, 66, 67, 20
Marxist theory of, 69
monetarist theory of, 22–23
Ricardian theory of, 74–81
Cantillon, Richard, 97
Capital
accumulation, 51, 105 in Austrian macroeconomics, 17, 18, 111, 120
confiscation through taxation, 95
and Hayekian triangles, 10
intertemporal structure of, 11,13, 14, 116–20
See also time dimension in mainstream macroeconomics, 12, 18, 117, 120
misallocation of, 9, 14,21, 30, 50, 54, 61, 83–86, 105, 111, 116–20
restructuring following boom, 14, 73, 84, 117–119 in underdeveloped countries, 106
See also production
Cassel, Gustav, 44
Central bank, 13, 20, 21, 28, 30–35, 42–45,78–81,93, 107, 108, 112–14
See also Federal Reserve System
Communism, 53–54
Coolidge, Calvin, 88–89
Currency school, British, 8, 9, 25–27,112
Deflation, 11, 16, 44, 48, 58–61
Depression
as a period of adjustment, 53, 61, 62, 77, 80, 84–87 definition of 65–66
following credit expansion, 30,34, 45, 57, 77, 86–87 and gold production, 48, 58–60
Great Depression, 16, 32, 39, 48, 59, 65, 88–90
Keynesian psychological explanation of, 12
length and depth of, 14, 34, 89
price level during, 40,46–48,77,101
prolonged by wage and price rigidity, 33, 47, 87–89
Salerno—Tullock exchange, 17, 18
volume of payments during, 41
See also business cycle
Entrepreneurship, 7, 71, 72, 80, 86
Expectations, 7,23,99–101,105,117
Federal Reserve System, 79,88–89,103
See also capital, misallocation of
Friedman, Milton, 22
General Theory of Employment, Interest, and Money
See Keynes, John Maynard
Gold
standard, 25, 26, 28, 32, 59- 60, 88, 90, 109–10, 120
Great Depression
See depression
Haberler, Gottfried, 7,10,11,14–16,37
Hansen, Alvin, 90
Hayek, Friedrich A. von
and central bank policy, 20
and the Hayekian triangle
See under capital
Monetary Theory and the Trade Cycle, 81
Prices and Production, 58, 81, 111
as a proponent of Austrian business cycle theory, 80, 90
Hayekian triangles
See capital
Hoover, Herbert, 89
in inter war Germany, 19, 30, 32, 102
Industrial Revolution, 69
Inflation
causes of, 20, 44, 45, 66, 75, 79, 107–10
effects of, 29–32, 59–60, 63–64, 73, 76–77, 80, 84–86, 94–106, 108
See hyperinflation
and overspending in Keynesian analysis, 66–68
premium, 11
solutions to, 86–88, 93, 108–10
squelched in a competitive banking industry, 78
with no increase in commodity prices, 48, 49
Interest rate
and allocation of resources, 9, 11, 13, 28–30, 52–53, 62–63, 83–84, 106, 115–17
See also capital, misallocation of artificial, 9,21,32, 111, 114, 117
manipulation of, 28, 30–31, 34–35, 45,81–82, 85, 114 natural, or real, 8, 11, 13, 81–82, 111–14, 117
Kaldor, Nicholas, 17
Keynesianism, 12, 13, 21–23, 66, 88, 90–91, 106–7, 120
Keynes, John Maynard
and “capital-free” macroeconomics, 12–13
and the destruction of the gold standard, 109
General Theory of Employment, Interest, and Money, 8, 66, 90
and government intervention in the economy, 66–67
and the misallocation of capital through credit inflation, 62–63
See also Keynesianism and business cycle, Keynesian theory of
Lerner, Abba P., 17
McCracken, Paul W, 67–68
Marx, Karl, 69
Principles of Economics, 111
Mises, Ludwig von
on the acceptance of Austrian business cycle theory, 7
on business cycles, 9, 19, 20, 25, 81–86, 96
on government intervention during economic crises, 86–88
on Lionel Robbins, 15
on the Great Depression, 89, 90
on real interest rates, 11
Theory of Money and Credit, 8, 80, 111
New Deal, 89
Nixon, Richard, 67
Peel’s Bank Act of 1844, 26
Phillips curve, 13
Prices
of consumer goods, 56
general level of, 9, 11, 45–47, 49, 60, 80, 96–99, 105
international variations in level of, 26, 76–77
of producer goods, 56, 84–85, 87
stabilization of, 43, 46, 63, 87, 89
See also deflation; inflation; wage-price spiral
Price theory, 70–71
Production
horizontal structure of, 50
process distortion, 9, 11, 19, 28–29, 46–63, 83–85, 98, 105, 116
roundaboutness of, 10–11, 19, 52–54, 57, 63,83, 115
time element in, 13, 20, 53, 57, 83, 115–16
See also time dimension
vertical structure of, 11, 14, 49–53
See also business cycle; depression
Ricardo, David, 74
Robbins, Lionel
recantation of Austrian theory, 15, 16
Robertson, Dennis, 57
Roosevelt, Franklin Delano, 89
Rothbard, Murray N., 8, 12–13, 17, 24, 65
Roundaboutness
See under production
Socialism, 68
Theory of Money and Credit
See Mises, Ludwig von
Time dimension, 10, 13, 18–19, 23, 115
See also production, time element in
Time preference, 81–82, 84, 113–14, 116–17
Trade cycle
See business cycle
Unemployment, 13–14, 18, 67–68, 87,89, 101–3, 107–9, 119
Wage-price spiral, 13, 20, 28–29
Wages
governmental manipulation of, 20, 87, 89, 108
increasing as a result of credit inflation, 28–29, 56, 83
union manipulation of, 20, 33, 106–9
See also wage-price spiral
Interest and Prices, 111
Wieser, Friedrich von, 27