The Bernanke-Yellen bubble-depression

The Bernanke-Yellen bubble-depression

By Mark Thornton / Mises Wire In a recent article I advocated for a new way of naming business cycles. The new approach emphasizes the cause rather than the effect. So instead of the “housing bubble” and “financial crisis,” we should refer to the Greenspan-Bernanke Crisis. Here we will turn our attention to the current situation. The […]

Why capitalists are repeatedly “fooled” by business cycles

Why capitalists are repeatedly “fooled” by business cycles

By Frank Shostak / Mises Daily According to the Austrian business cycle theory (ABCT) the artificial lowering of interest rates by the central bank leads to a misallocation of resources because businesses undertake various capital projects that — prior to the lowering of interest rates —weren’t considered as viable. This misallocation of resources is commonly […]