Austrian Business Cycle Theory

From: R
Sent: Saturday, September 16, 2017 3:17 PM
To: Walter Block <[email protected]
Subject: Re: hey

Hey, Fractional reserve banking is inflationary and causes the boom and bust cycle

Booms lead to misallocation of resources and the busts leads to reallocation of those resources

So is identifying and shorting bubbles the only way to correct this mistake? Thanks and Regards R

Dear R:

The best way to correct this mistake is to get rid of the Fed and central banks and to embrace Austrian Business Cycle Theory. About which, here are some readings:

Anderson, 2009A, 2009B, Barnett and Block 2005, 2006A, 2006B, 2008; Block, 2001; Block and Barnett, 2007; Cochran, Call, and Glahe, 1999; Cochran and Call, 1998; Cochran and Glahe, 1994; Cochran, 1998, 2001A, 2001B, 2001C 2003, 2009; Gunning, 1985; Murphy, 2008A, 2008B, 2008C, 2009A, 2009B, 2009C, 2010, 2011, undated; Raj, 2008; Ritenour, 2000; Rosenthal, 2012; Salerno, 1989, 1996. 1999, 2000; Sechrest, 1998; Woods, 2009A, 2009B

Anderson, William L. 2009. “Friedman and the Fed: Is Liquidity the Answer?” April 17; http://mises.org/story/2929

Anderson, William L. 2009. “One Cheer for Paul Krugman, or Why the Bubble Economy?”
January 1; http://mises.org/story/3275

Barnett, William II and Walter E. Block. 2005. “Professor Tullock on Austrian Business Cycle Theory,” Advances in Austrian Economics, Vol. 8, pp. 431-443

Barnett, William II and Walter E. Block. 2006A. “On Gallaway and Vedder on Stabilization Policy” Quarterly Journal of Austrian Economics. Vol. 9, No. 1, spring, pp. 57-81; http://www.mises.org/journals/qjae/pdf/qjae9_1_5.pdf

Barnett, William and Walter E. Block. 2006B. “Tyler Cowen on Austrian Business Cycle Theory: A Critique.” New Perspectives on Political Economy, Vol. 2, No. 2, pp. 26-84; http://pcpe.libinst.cz/nppe/2_2/nppe2_2_2.pdf; http://pcpe.libinst.cz/nppe/

Barnett, William II and Walter E. Block. 2008. “Reply to Hummel on Austrian Business Cycle Theory.” Reason Papers Vol. 30, Fall, pp. 59-90; http://www.reasonpapers.com/pdf/30/rp_30_4.pdf

Block, Walter E. 2001. “Yes, We Have No Chaff: A Reply to Wagner’s “Austrian Business Cycle Theory: Saving the Wheat While Discarding the Chaff,” Quarterly Journal of Austrian Economics, Vol. 4, No. 1, Spring, pp. 63-73. //www.mises.org/journals/qjae/pdf/qjae4_1_4.pdf

Block, Walter and William Barnett, II. 2007. “On Laidler on Austrian Business Cycle Theory.” Review of Austrian Economics, Vol. 20, No. 1, March, pp. 43-61; http://dx.doi.org/10.1007/s11138-006-0004-y

Block, Walter and William Barnett II. 2007. “The Austrian Tent? A Rejoinder to Gallaway and Vedder” Corporate Ownership & Control, Vol. 4, No. 3, p. 232;
http://www.virtusinterpress.org/additional_files/journ_coc/issues/COC_(Volume_4_Issue_3_Spring_2007_Continued).pdf

Cochran, John P., Call, Steven T., and Glahe, Fred R. 1999. “Credit Creation or Financial Intermediation? Fractional Reserve Banking in a Growing Economy.” The Quarterly Journal of Austrian Economics, vol. 2, no. 3, 53-64. http://mises.org/journals/qjae/pdf/Qjae2_3_2.pdf

Cochran, John P. and Call, Steven T. 1998. “The Role of Fractional Reserve Banking and Financial Intermediation in the Money Supply Process: Keynes and the Austrians.” The Quarterly Journal of Austrian Economics. 1(3): 29-40. http://mises.org/journals/qjae/pdf/Qjae33.pdf .

Cochran, John P. and Glahe, Fred R. 1994. “The Keynes-Hayek Debate: Lessons for Contemporary Business Cycle Theorists.” History of Political Economy 26(1), Spring: 69-94. Reprinted in Wood, John ed. 2004. Friedrich A. von Hayek: Critical Assessments of Contemporary Economists, 2nd Series Vol. II. Routledge, pp. 60-82; http://hope.dukejournals.org/cgi/reprint/26/1/69 .

Cochran, John P. 1998. “Review of Central Banking in Theory and Practice, Alan S. Blinder, Cambridge and London: The MIT Press, 1998.” Quarterly Journal of Austrian Economics, vol.1, no. 4 (winter), pp. 89-92. http://mises.org/journals/qjae/pdf/Qjae45.pdf .

Cochran, John P. 2001A. “Hayek’s Law and Rothbard’s Wisdom.” www.mises.org. August 22. http://mises.org/daily/765

Cochran, John P. 2001B. “The Hangover Theory?” March 16. http://mises.org/daily/630

Cochran, John P. and Call, Steven T. 2001C. “Austrian Business Cycles, Plucking Models, and Real Business Cycles.” Ludwig Von Mises Institute Working Paper. http://mises.org/journals/scholar/Cochran.pdf .

Cochran, John P. 2003. “False Hopes, False Fears, and Real Concerns.” Daily Article at http://www.mises.org ; June 17. http://www.mises.org/fullstory.asp?control=1249. ‘Reprinted’ at gold-eagle.com as http://www.gold-eagle.com/gold_digest_03/cochran061803.html.

Cochran, John P. 2009. “Return of the Dead Hand”.” Daily Article at http://www.mises.org ; June 24. 2009. http://mises.org/story/3516

Gunning, J. Patrick. (1985) “Causes of Unemployment: The Austrian Perspective.” History of Political Economy. 17 (2): 222-244.

Murphy, Robert P. 2008A. “Consumers Don’t Cause Recessions” November 11; http://mises.org/story/3194

Murphy, Robert P. 2008B. “An Open Letter to Gary Becker re: Depressions” November 24;
http://mises.org/story/3220

Murphy, Robert P. 2008C. “Filling the Holes in Krugman’s Analysis” January 15;
http://mises.org/story/3291

Murphy, Robert P. 2015 “Paul Krugman: Three Wrongs Don’t Make a Right.” May 20; http://fee.org/freeman/paul-krugman-three-wrongs-dont-make-a-right/
Murphy, Robert P. 2011 “My Reply to Krugman on Austrian Business Cycle Theory.” January 24; https://mises.org/library/my-reply-krugman-austrian-business-cycle-theory

Murphy, Robert P. 2009A. “Does “Depression Economics” Change the Rules?” January 12;
http://mises.org/story/3290

Murphy, Robert P. 2009B. “Robert Lucas’s Strange Faith in Bernanke” January 26; http://mises.org/story/3305

Murphy, Robert P. 2009C. “Correcting Quiggin on Austrian Business-Cycle Theory” May 25; http://mises.org/story/3466

Murphy, Robert P. 2010. “The Economics of Libertarianism, Confused,” July 12;
http://mises.org/daily/4535

Murphy, Robert P. 2011. “My Reply to Krugman on Austrian Business-Cycle Theory.” January 24; http://mises.org/daily/4993

Murphy replies to critics of abct: http://mises.org/story/3555

Raj, Madhusudan. 2008. “Mending the Meltdown : Fending off the Interventions and Resurrecting the Market,” The India Economy Review, December, pp. 38-44; http://141.164.133.3/exchange/walterblock/Inbox/Re:%20[mises]%20please%20help%20on%20ABCT%20biblio.EML/1_multipart_xF8FF_2_Mending%20The%20Meltdown%20-%20Madhusudan%20Raj.pdf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/Mending%20The%20Meltdown%20-%20Madhusudan%20Raj.pdf?attach=1
Ritenour, Shawn R. 2000. “Postmodern Economics: The Return of Depression Economics by Paul Krugman,” The Quarterly Journal of Austrian Economics, Vol. 3, No. 1: 79-83.
Rosenthal, Sean. 2012. “When Anticipation Makes Things Worse.” June 12;
http://mises.org/daily/6068/When-Anticipation-Makes-Things-Worse

Salerno, Joseph T. 1989. “Comment on Tullock’s ‘Why Austrians Are Wrong About Depressions.’” Review of Austrian Economics 3: 141-145; http://mises.org/journals/rae/pdf/rae3_1_11.pdf
Salerno, Joseph T. 1996. “Why We Are Winning.”Austrian Economics Newsletter, Fall , Volume 16, Number 3; http://mises.org/journals/aen/aen16_3_1.asp

Salerno, Joseph T. 1999. “Money and Gold in the 1920s and 1930s: An Austrian View”
Freeman, October, Volume, 49, Issue: 10;
http://www.thefreemanonline.org/featured/money-and-gold-in-the-1920s-and-1930s-an-austrian-view/

Salerno, Joseph T. 2000. “Inflation and Money: A Reply to Timberlake,” September 2000 • Volume, 50, Issue: 9; http://www.thefreemanonline.org/featured/inflation-and-money-a-reply-to-timberlake/

Sechrest, Larry. 1998. Review of Tyler Cowen’s Risk and Business Cycles: New and Old Austrian Perspectives, Quarterly Journal of Austrian Economics, Fall 1998, Vol. 1, No. 3, 73-79; http://mises.org/journals/qjae/pdf/qjae1_3_9.pdf

Woods, Thomas E. Jr. 2009A. Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse. Washington D.C.: Regnery Publishing

Woods, Thomas E. Jr. 2009B. “Response to the ‘Market Failure’ Drones” June 10; http://mises.org/story/3503

Woods, Thomas E. Jr. 2009. “Krugman Failure, Not Market Failure” June 19; https://www.lewrockwell.com/woods/woods116.html

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4:56 pm on December 23, 2018