Index

(Prepared by Timothy Terrell)

Beveridge, Lord William, 100

Böhm-Bawerk, Eugen von, 9, 27, 111

Bretton Woods, 109, 110

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

circulating, 10, 11, 51

confiscation through taxation, 95

fixed, 10,51,62, 63

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

secondary, 15, 18, 58, 119

theory of, 8, 72–74, 90

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

Fisher, Irving, 11, 46

Forced saving, 56, 105, 115

See also capital, misallocation of

Friedman, Milton, 22

Garrison, Roger W, 7, 111

General Theory of Employment, Interest, and Money

See Keynes, John Maynard

Gold

production of, 48, 60

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

Hawtrey, Ralph, 44–47, 61

Hayek, Friedrich A. von

and central bank policy, 20

and the Hayekian triangle

See under capital

vs. Keynesianism, 12, 13

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

Hicks, John R., 17, 96n

Hoover, Herbert, 89

Hume, David, 74, 97

Hyperinflation, 19, 20, 102

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

Keynesian revolution, 8, 90

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

Laissez-faire policy, 88, 90

Lerner, Abba P., 17

McCracken, Paul W, 67–68

Marx, Karl, 69

Menger, Carl, 9, 27, 111

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

Monetarism, 13, 22–23

New Deal, 89

Nixon, Richard, 67

Peel’s Bank Act of 1844, 26

Phillips curve, 13

Prices

of commodities, 30, 48

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

relative, 11, 85, 96–98

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

Recession, 66–67, 72, 87, 103

See also business cycle; depression

Ricardo, David, 74

Robbins, Lionel

recantation of Austrian theory, 15, 16

The Great Depression, 15, 28n

Robertson, Dennis, 57

Roosevelt, Franklin Delano, 89

Rothbard, Murray N., 8, 12–13, 17, 24, 65

Roundaboutness

See under production

Salerno, Joseph T., 17, 18

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

Tullock, Gordon, 17, 18

Unemployment, 13–14, 18, 67–68, 87,89, 101–3, 107–9, 119

Unions, 20, 33, 104, 106–9

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

rigidity of, 33, 35,47, 106–9

union manipulation of, 20, 33, 106–9

See also wage-price spiral

Wicksell, Knut 8, 9, 27

Interest and Prices, 111

Wieser, Friedrich von, 27