Tyler Cowen on Austrian Business Cycle Theory: A Critique

New Perspectives on Political Economy, Vol. 2, No. 2, pp. 26-85, 2006

60 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

Cowen (1997) criticizes Austrian Business Cycle Theory (ABCT) on eight grounds: 1. systematic errors; 2. inflation volatility; 3. confusion of inflation and savings; 4. confusion of inflation and investment; 5. real vs. nominal rates of interest; 6. interest rate information; 7. investor interpretation of interest rates; 8. validation of inflationary investments. The present paper rejects all of these claims, and defends ABCT against them.

Suggested Citation

Block, Walter E. and Barnett, William, Tyler Cowen on Austrian Business Cycle Theory: A Critique (July 6, 2011). New Perspectives on Political Economy, Vol. 2, No. 2, pp. 26-85, 2006. Available at SSRN: https://ssrn.com/abstract=1880544

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

Register to save articles to
your library

Register

Paper statistics

Downloads
106
Abstract Views
708
rank
253,452
PlumX Metrics