Expectations in Austrian Business Cycle Theory: Market Share Matters

27 Pages Posted: 21 Mar 2012 Last revised: 5 Mar 2014

See all articles by Nicolas Cachanosky

Nicolas Cachanosky

Metropolitan State University of Denver; American Institute for Economic Research

Date Written: March 26, 2014

Abstract

One of the most important objections to the Mises-Hayek business cycle theory is the rational expectations critique. The debate between supporters and critics of the Mises-Hayek theory has not paid sufficient attention to the problem of differences in expectations and the market share in the allocation of production factors. I represent financially the effects that occur under the Austrian business cycle theory in the market of production factors as well as how economic imbalances occur when a central bank follows an expansionary policy and entrepreneurs have different expectations.

Keywords: Austrian business cycle theory, rational expectations, adverse selection, monetary policy

JEL Classification: E32, E51, E58

Suggested Citation

Cachanosky, Nicolas, Expectations in Austrian Business Cycle Theory: Market Share Matters (March 26, 2014). Review of Austrian Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2025666 or http://dx.doi.org/10.2139/ssrn.2025666

Nicolas Cachanosky (Contact Author)

Metropolitan State University of Denver ( email )

Student Success Building
890 Auraria Pkwy #310
Denver, CO 80217
United States

HOME PAGE: http://www.ncachanosky.edu

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
194
rank
148,172
Abstract Views
957
PlumX Metrics