On Hummel on Austrian Business Cycle Theory

Reason Papers, Vol. 30, pp. 59-90, Fall 2008

32 Pages Posted: 8 Jul 2011

See all articles by Walter E. Block

Walter E. Block

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business

William Barnett

Loyola University New Orleans

Date Written: July 6, 2011

Abstract

Jeffrey Rogers Hummel criticizes Austrian Business Cycle Theory (ABCT), and it is our intent in the present article to reply to his criticisms, defending this viewpoint against the difficulties he raises with it. Hummel sees six separate problems with the Austrian or praxeological analysis of the business cycle, and we shall comment on each of them. To wit, following Hummel’s outline, we devote Section 2 to Asymmetry, 3 to Definitions of the Money Stock, 4 to Net Investment, 5 to Deflation, 6 to the Constant Rate of Credit Expansion, and 7 to International Aspects of the ABCT. We conclude in Section 8. Since Hummel prefaces his remarks with his “fundamental assumption,” we shall follow him in that regard here.

Suggested Citation

Block, Walter E. and Barnett, William, On Hummel on Austrian Business Cycle Theory (July 6, 2011). Reason Papers, Vol. 30, pp. 59-90, Fall 2008. Available at SSRN: https://ssrn.com/abstract=1880338

Walter E. Block (Contact Author)

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business ( email )

6363 St. Charles Avenue
Box 15, Miller 321
New Orleans, LA 70118
United States
(504) 864-7944 (Phone)
(504) 864-7970 (Fax)

William Barnett

Loyola University New Orleans ( email )

526 Pine Street
New Orleans, LA 70118
United States

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