[Download] ~ Austrian Business Cycle Theory and the Global Financial Crisis: Confessions of a Mainstream Economist. # by The Quarterly Journal of Austrian Economics ~ Book PDF Kindle ePub Free

eBook details

Title: Austrian Business Cycle Theory and the Global Financial Crisis: Confessions of a Mainstream Economist.
Author : The Quarterly Journal of Austrian Economics
Release Date : January 22, 2010
Genre: Finance,Books,Business & Personal Finance,
Pages : * pages
Size : 273 KB

Description

Milton Friedman used to say that there is no such thing as Austrian economics--or Chicago economics, or Keynesian economics for that matter. Instead, he noted, there is only good economics and bad economics (Vaughn 1994, p. 105). What makes an economic theory good, Friedman (1953) argued, is the empirical accuracy of the predictions it generates. He rejected Austrian business cycle theory because he did not believe it was an accurate explanation of economic recessions as they actually occurred in practice (Friedman 1993). Not all economists agree with Friedman's criterion for the validity of an economic theory--indeed, many Austrians do not. Nonetheless, one wonders whether Friedman, who passed away in November 2006 shortly before the onset of the recent global financial crisis, might have felt differently today about the explanatory power of Austrian business cycle theory in light of that crisis.