In “Monetary Theory and the Trade Cycle” Hayek holds that the business cycle is caused by fractional-reserve banking, which is a natural credit organization formed out of the market. If this is the case, then it follows that economic cycles are an intrinsic part of capitalism.
Posts Tagged ‘Friedrich’
Can We Still Avoid Inflation?
Friedrich Hayek speaking on inflation and the money supply, before the Trustees and guests of the Foundation for Economic Education at Tarrytown, New York on May 18, 1970.
