Reflexivity, Business Cycles and the New Economy
Quarterly Journal of Austrian Economics, Vol. 7, No. 3, pp. 45-69, 2004
Posted: 30 Jan 2006 Last revised: 24 Apr 2009
This paper begins by examining George Soros' theory of reflexivity. Soros' boom-bust model is then presented which, along with reflexivity theory, is synthesized with Austrian Business Cycle Theory in the development of specific criteria for each of the eight stages of a business or boom-bust cycle. Significant insight into business cycles can be gained by utilizing these criteria, as will be shown in an analysis of the relatively recent new economy business cycle.
Keywords: Business cycle, markets, investments
JEL Classification: E32, G10
Suggested Citation: Suggested Citation