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 ‘production’
Money and Capital: A Reply
Hayek’s response to Sraffa’s critique of Prices and Production, in 1934, defending his theory of capital and money.
Dr. Hayek on Money and Capital
Piero Sraffa’s critique of Prices and Production, published in 1932. Sraffa’s critique would form the center of the Cambridge critique of the Austrian theory of capital.
Taxes Discourage Production
A chapter from Henry Hazlitt’s “Economics in One Lesson”. Hazlitt explains why taxation will discourage investment and production, disallowing new jobs from being created and perpetuating unemployment.
