scholarly journals The business cycle: a definition

2021 ◽  
pp. 205-262
Author(s):  
Tuur Demeester
Keyword(s):  
Business Cycle ◽  
Jel Classification ◽  
Austrian School ◽  
Methodological Framework ◽  
The Core ◽  
Palabras Clave ◽  
The Business Cycle ◽  
Necessary And Sufficient ◽  
Counter Argument

The goal of this article is to properly define the economic phenomenon of the business cycle. The text is rooted in the tradition of the Austrian School of Economics, and the methodological framework builds on concepts developed by Aristotle and Thomas Aquinas. This leads to the development of a few new methodological concepts, such as a re-interpretation of «inflation» and «deflation», and the re-introduction of «imaginary goods» as an important social phenomenon. The core observation of the article is that the business cycle is in fact a subclass of another kind of cycle, the «fraud cycle». Our conclusion is that in order to produce a business cycle, the occurrence of institutional fraud in the sphere of money and banking are both necessary and sufficient. The counter-argument that honest banking can also produce business cycles is refuted in Appendix I. We believe this article is significant in two ways: 1) it provides an unambiguous recipe for the long term extermination of the business cycle; and 2) it helps expand the scope of the Austrian School beyond economics into fields of law and morality. Key words: Business Cycle, Fraud Cycle, Austrian School, money and banking. JEL Classification: B53, B49, D01, K13. Resumen: El objetivo de este artículo es definir apropiadamente el fenómeno económico del ciclo económico. El resto está enraizado en la tradición de la Escuela Austriaca de Economía, y el marco metodológico parte de los conceptos desarrollados por Aristóteles y Tomás de Aquino. Esto conduce al desarrollo de algunos conceptos metodológicos nuevos, tales como la reinterpretación de la «inflación» y la «deflación», y la reintroducción de los «bienes imaginarios» como un fenómeno social importante. La observación central de este artículo es que el ciclo económico es de hecho una subclase de otro tipo de ciclo, el «ciclo del fraude». Nuestra conclusión es que para producir un ciclo económico, la existencia de un fraude institucional en la esfera del dinero y la banca es una condición necesaria y suficiente. El Apéndice I refuta el contra-argumento de que una banca honesta también puede producir ciclos económicos. Creemos que este artículo es significativo por dos motivos: 1) ofrece una receta clara para la eliminación del ciclo económico; y 2) ayuda a expandir el ámbito de la Escuela Austriaca más allá del campo de la Economía hacia los campos del Derecho y la Moralidad. Palabras clave: Ciclo económico, ciclo del fraude, Escuela Austriaca, dinero y banca. Clasificación JEL: B53, B49, D01, K13.

scholarly journals Beyond Keynes and the Classics. Outline of the Goods Side/Money Side Model of the Business Cycle and Macroeconomic Configurations

2021 ◽  
pp. 111-135
Author(s):  
Antony P. Mueller
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Aggregate Demand ◽  
Jel Classification ◽  
Macroeconomic Model ◽  
Macroeconomic Analysis ◽  
Palabras Clave ◽  
Demand Models ◽  
The Business Cycle ◽  
Basic Features

This paper presents the goods side/money side (GSMS) model as a novel way of macroeconomic analysis. The GSMS model goes beyond Keynesianism as it makes a sharp distinction between the goods side and the money side and thus avoids the indistinctness between real nominal values that come with spending in aggregate demand models. The GSMS model transcends classical macroeconomics in its traditional and modern versions as it reinstates money as an active factor in the economy. Different from monetarism, the key monetary concept of the GSMS model is «macroeconomic liquidity», which includes velocity of circulation. The present paper presents the basic features of the model and shows its use by analyzing macroeconomic configurations, the business cycle, and economic growth. The paper includes an appendix with an evaluation of macroeconomic configurations in the light of the GSMS model. Key words: GSMS Macroeconomic Model, Monetary Policy, Economic Growth, Austrian Theory of the Business Cycle (ATB). JEL Classification: A23, E32, E52. Resumen: Este trabajo presenta el modelo lado del mercado de bienes/lado del mercado de dinero (GSMS) como una nueva forma de análisis macro-económico. El modelo GSMS va más allá del keynesianismo, ya que hace una clara distinción entre el lado de los bienes y el lado del dinero y, por tanto, evita la ausencia de diferenciación entre los valores nominales y reales que vienen con el gasto en los modelos de demanda agregada. El modelo GSMS trasciende la macroeconomía clásica en sus versiones tradicional y moderna, ya que restituye al dinero un rol activo en la economía. A diferen-cia del monetarismo, el concepto monetario clave del modelo GSMS es la «liquidez macroeconómica», que incluye la velocidad de circulación. El pre-sente artículo presenta las características básicas del modelo y muestra su uso mediante el análisis de configuraciones macroeconómicas, el ciclo eco-nómico y el crecimiento económico. El documento incluye un apéndice con una evaluación de configuraciones macroeconómicas a la luz del modelo GSMS. Palabras clave: Modelo Macroeconómico GSMS, Política Monetaria, Cre - cimiento Económico, Teoría Austriaca del Ciclo Económico. Clasificación JEL: A23, E32, E52.

scholarly journals Vínculos entre la Escuela Austriaca de Economía y el método de la inversión en valor

2021 ◽  
pp. 255-304
Author(s):  
Diego E. Quijano Durán
Keyword(s):  
Common Sense ◽  
Jel Classification ◽  
Austrian School ◽  
Economic Calculation ◽  
Austrian School Of Economics ◽  
Value Investing ◽  
Palabras Clave ◽  
The World ◽  
The Common

The Austrian school of economics and the investment method known as value investing have a similar conception of the world, so that it is possible to find multiple links between them and form a coherent structure. To the economist, this allows for a much deeper understanding of the entrepreneurial function and the manner in which economic calculation is actually performed. To the investor, it offers a theoretical framework that explains economic phenomena, permitting him to better understand the role of the entrepreneur and to protect his investment when dangerous patterns can be observed. In this essay, we begin from the common stance of both schools of thought towards common sense, the use of realistic assumptions, the importance of prudence and the low value of complex mathematics in the fields of economics and finance. We then proceed to develop in greater depth nine aspects that have strong philosophical and scientific links. Key words: Value investing, Austrian school of economics, entrepreneurship, dynamic efficiency, economic calculation. JEL Classification: A12, G17, M20. Resumen: La Escuela Austriaca de Economía y el método de inversión en valor tienen una concepción similar del mundo que permite entrelazarlas coherentemente. Al economista, le permite profundizar el conocimiento del ejercicio de la función empresarial y la realización del cálculo económico en la práctica. Al inversor, le ofrece un marco teórico para comprender mejor el papel del empresario y los fenómenos económicos y detectar temprano patrones peligrosos y así protegerse. En este trabajo partimos de la base de que ambas escuelas de pensamiento tienen sus raíces en el sentido común y los supuestos realistas, que son prudentes a la hora de ver el futuro y que dudan de la utilidad de las matemáticas complejas en los campos económicos y financieros. Sobre ello, desarrollamos nueve aspectos en los cuales hay fuertes conexiones como, por ejemplo, la manera en que el ejercicio de la empresarialidad mejora la eficiencia del mercado y coordina los planes de las personas. Palabras clave: Inversión en valor, escuela austriaca de economía, empre-sarialidad, eficiencia dinámica, cálculo económico. Clasificación JEL: A12, G17, M20.

scholarly journals Schumpeterian aspects of growth and its correlative classical and neoclassical approaches

2021 ◽  
pp. 85-117
Author(s):  
Sergio A. Berumen
Keyword(s):  
Economic Growth ◽  
Important Determinant ◽  
Jel Classification ◽  
Central Concept ◽  
Goods And Services ◽  
Palabras Clave ◽  
Standards Of Living ◽  
Capital Humano ◽  
Sustainable Economic Growth

Economic Growth is a central concept in Economic Theory. Most of the modern societies regard growth as an important determinant for rising standards of living. Their effects can be observed not only in more goods and services but also in brand new processes. Investment in human capital is re-garded as the very source of long-term, sustainable Economic Growth. The purpose of this paper is to provide a brief description of Economic Growth, how to approach its measurement, and to provide a brief review of the Schum-peterian thought and the main schools that have undertaken from the Classical and Neoclassical Approaches. Key Words: Economic Growth; Schumpeterian Thought; Classical and Neo-classical Approaches. JEL Classification: B12, B13, B52, O43, O49. Resumen: El crecimiento económico es un concepto fundamental de la teoría económica. La mayoría de las sociedades modernas consideran el crecimiento como una determinante importante para el incremento de los niveles de vida. Sus efectos se pueden observar en el aumento de bienes y servicios, pero también en la disponibilidad de nuevos procesos. En este escenario, la inver-sión en capital humano es, de hecho, la fuente original del crecimiento económico a largo plazo y de manera sostenible. El objetivo del presente trabajo consiste en explorar los principales rudimentos del crecimiento económico, de su preceptiva medición y de mostrar las aportaciones originales alcanzadas desde el Pensamiento Schumpeteriano, así como de su contrastación con las perspectivas Clásicas y Neoclásicas. Palabras clave: Crecimiento económico; Pensamiento Schumpeteriano; aproxi-maciones Clásica y Neoclásica.

scholarly journals Journal of the History of Economic Thought Preprints - Limits to Arbitrage and Interest Rates: A Debate Between Keynes, Hawtrey and Hicks

2018 ◽  
Author(s):  
Lucy BRILLANT
Keyword(s):  
Business Cycle ◽  
Central Bank ◽  
Interest Rates ◽  
Economic Thought ◽  
History Of Economic Thought ◽  
Short Term ◽  
Limits To Arbitrage ◽  
History Of ◽  
The Business Cycle

This paper deals with a debate between Hawtrey, Hicks and Keynes concerning the capacity of the central bank to influence the short-term and the long-term rates of interest. Both Hawtrey and Keynes considered the central bank’s ability to influence short-term rates of interest. However, they do not put the same emphasis on the study of the long-term rates of interest. According to Keynes, long-term rates are influenced by future expected short-term rates (1930, 1936), whereas for Hawtrey (1932, 1937, 1938), long-term rates are more dependent on the business cycle. Short-term rates do not have much effect on long-term rates according to Hawtrey. In 1939, Hicks enters the controversy, giving credit to both Hawtrey’s and Keynes’s theories, and also introducing limits to the operations of arbitrage. He thus presented a nuanced view.

scholarly journals Jesús Huerta de Soto: The Synthesizer of the Austrian School

2017 ◽  
pp. 173-202
Author(s):  
William Hongsong Wang
Keyword(s):  
Jel Classification ◽  
Bank Credit ◽  
Austrian School ◽  
Dynamic Efficiency ◽  
Free Banking ◽  
Economic Cycles ◽  
Palabras Clave

Professor Jesús Huerta de Soto is one of the leading Austrian School economists in the contemporary era. This paper reviews his biography as a great Austrian School economist, a successful entrepreneur and a tireless fighter for freedom. This paper also reviews his original and important aca-demic contributions on the theory of socialism and entrepreneurship, the theory of bank credit and economic cycles, and the theory of dynamic efficiency. Keywords: Jesús Huerta de Soto, Austrian School, free banking, socialism, dynamic efficiency. JEL Classification: B41, B53, C18, D53, D6, D81, D83, E32, E42, E52, E6, G21, H23, K11, K12, L21, P11, P41, P21. Resumen: El profesor Jesús Huerta de Soto es actualmente uno de los principa-les economistas de la Escuela Austriaca. Este trabajo revisa su biografía como gran economista austriaco, emprendedor de éxito, y un luchador incansable y entusiasta por la libertad. Este artículo también revisa sus contribuciones aca-démicas originales en lo que respecta a la teoría del socialismo y la función empresarial, la teoría del crédito bancario y los ciclos económicos, y la teoría de la eficiencia dinámica. Palabras clave: Jesús Huerta de Soto, Escuela Austriaca, banca libre, socia-lismo, eficiencia dinámica. Clasificación JEL: B41, B53, C18, D53, D6, D81, D83, E32, E42, E52, E6, G21, H23, K11, K12, L21, P11, P41, P21.

Asymmetric behavior of tobacco consumption in Spain across the business cycle: a long-term regional analysis

2020 ◽  
Vol 20 (4) ◽  
pp. 391-421
Author(s):  
Juan M. Martín Álvarez ◽  
Alejandro Almeida ◽  
Aida Galiano ◽  
Antonio A. Golpe
Keyword(s):  
Business Cycle ◽  
Regional Analysis ◽  
Tobacco Consumption ◽  
Asymmetric Behavior ◽  
The Business Cycle

LIMITS TO ARBITRAGE AND INTEREST RATES: A DEBATE AMONG KEYNES, HAWTREY, AND HICKS

2018 ◽  
Vol 40 (3) ◽  
pp. 335-351 ◽  
Author(s):  
Lucy Brillant
Keyword(s):  
Business Cycle ◽  
Central Bank ◽  
Interest Rates ◽  
Short Term ◽  
John Maynard Keynes ◽  
Limits To Arbitrage ◽  
The Business Cycle

This paper deals with a debate among Ralph George Hawtrey, John Richard Hicks, and John Maynard Keynes concerning the capacity of the central bank to influence the short-term and the long-term rates of interest. Both Hawtrey and Keynes considered the central bank’s ability to influence short-term rates of interest. However, they do not put the same emphasis on the study of the long-term rates of interest. According to Keynes, long-term rates are influenced by future expected short-term rates (1930, 1936), whereas for Hawtrey ([1932] 1962, 1937, 1938), long-term rates are more dependent on the business cycle. Short-term rates do not have much effect on long-term rates, according to Hawtrey. In 1939, Hicks enters the controversy, giving credit to both Hawtrey’s and Keynes’s theories, and also introducing limits to the operations of arbitrage. He thus presented a nuanced view.

scholarly journals The Mises-Hayek business cycle theory

2021 ◽  
pp. 81-133
Author(s):  
Robyn Harte- Bunting
Keyword(s):  
Financial Crisis ◽  
Business Cycle ◽  
Banking Sector ◽  
Jel Classification ◽  
Policy Recommendations ◽  
Business Cycle Theory ◽  
Austrian Business Cycle Theory ◽  
Palabras Clave ◽  
Austrian Business Cycle ◽  
Similarities And Differences

The Paper is an Overview of Austrian Business Cycle Theory (ABCT) phenomena it is intended to explain, economy wide crisis especially concentrated on the banking sector. A short examination of similarities and differences between Mises and Hayek, the main developers of ABCT, is then given. Finally, some policy recommendations are examined in the light of ABCT. Key words: Financial Crisis, Business Cycle, Inflation, Saving. JEL Classification: B53, E42, E44, E61, G01, G21, P10, P20. Resumen: El artículo es una visión general de la Teoría Austriaca del Ciclo Económico (TACE) basada en un primer contacto con la literatura. La TACE se presenta en términos de los fenómenos que intenta explicar: crisis eco-nómicas, concentradas en el sector bancario. Después se expone una breve investigación de las semejanzas y diferencias entre Mises y Hayek, los prin - cipales contribuyentes a la TACE. El trabajo concluye con unas recomenda-ciones de política económica que se analizan a la luz de la TACE. Palabras clave: Crisis Financiera, Ciclo Económico, Inflación, Ahorro. Clasificación JEL: B53, E42, E44, E61, G01, G21, P10, P20.

scholarly journals Cykl koniunkturalny w Turcji w latach 2005–2020 — interpretacja austriackiej szkoły ekonomii

Ekonomia ◽  
2021 ◽  
Vol 27 (1) ◽  
pp. 37-53
Author(s):  
Patrycja Guzikowska
Keyword(s):  
Business Cycle ◽  
Austrian School ◽  
Austrian School Of Economics ◽  
Real Gdp ◽  
Third Phase ◽  
Turkish Economy ◽  
High Inflation ◽  
The Business Cycle ◽  
Two Phases ◽  
The Interest Rate

Turkey was hit by the recession, defined in a classic way (as negative real GDP growth lasting at least two quarters), three times over the discussed period. The main goal of the central bank of Turkey is to keep inflation as close as possible to the inflation target. The use of the interest rate as a tool to stabilize the economic situation is therefore limited. The country has experienced periods of high inflation which was not temporary, but long-term. Using the approach appropriate to the Austrian School of Economics, the article analyzes the behavior of the Turkish economy in 2005–2020. In the discussed time horizon, two phases of the business cycle have been identified according to the Austrian School of Economics — the first from 2005 to the first quarter of 2014, and the second from the second quarter of 2014 to 2020. It can be assumed that the Turkish economy will enter the third phase of the business cycle in the near future, although it is difficult to determine when it will happen.

scholarly journals La educación de la empresarialidad en las familias empresarias

2018 ◽  
pp. 229-281
Author(s):  
Fernando Nogales
Keyword(s):  
Social Institutions ◽  
Jel Classification ◽  
Family Businesses ◽  
Austrian School ◽  
Great Similarity ◽  
Business Values ◽  
Palabras Clave ◽  
The World ◽  
Great Relevance ◽  
Specific Education

The present work aims to make visible the importance that entrepre-neurship education has for business families from the perspective of the Aus-trian School of Economics. Throughout history family businesses have always had great relevance throughout the world. Families as institutions, and compa-nies as organizations, both have proved to be always great generators of wealth. Furthermore, this work aims to analyze the great similarity that the foun-ders have in their concept of being an entrepreneur with the economic princi-ples of the Austrian School of Economics. All this has not arisen by chance, but is the result of a specific education in concrete values ​that have been transmit-ted internally from generation to generation throughout history. We will investi-gate what these family and business values ​are, i.e. how business families educate their children, before they enter the company and later, institutionally, from their involvement in it. Keyword s: Family Businesses, Social Institutions that generate wealth, entrepre-neurship education in business families. JEL Classification: A21, B53, I21. El presente trabajo pretende visibilizar la importancia que tiene para las familias empresarias la educación de la empresarialidad desde la perspec-tiva de la Escuela Austriaca de Economía. A lo largo de la historia las empre-sas familiares han tenido siempre una gran relevancia en todo el mundo. Las familias como instituciones y las empresas como organizaciones han demos-trado ser siempre grandes generadoras de riqueza. Por otra parte, este trabajo tiene como objetivo analizar la gran similitud que tienen los fundadores en su concepto de ser empresario con los principios económicos de la Escuela Aus-triaca de Economía. Todo ello no ha surgido por azar, sino que es el fruto de una determinada educación en valores concretos que se han ido transmitiendo internamente de generación en generación a lo largo de la historia. Investiga-remos cuáles son dichos valores familiares y empresariales, cómo las familias empresarias educan a sus hijos antes de su entrada en la empresa y posterior-mente, ya de manera institucional, a partir de su implicación en la misma. Palabras clave: Empresas Familiares, Instituciones sociales generadoras de riqueza, la educación de la empresarialidad en las familias empresarias. Clasificación JEL: A21, B53, I21.

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