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The Tragedy of the Euro
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Recent blog posts
- Tragödie des Euro - Leseprobe
- Free shipping. The Tragedy of the Euro. 2nd edition. from Europe
- Slovak edition: "The tragedy of the Euro"
- Master in Austrian Economics
- Panel discussion on the Euro
- Banksterism Compared
- Deutsche Ausgabe: Die Tragödie des Euro
- Review of the Tragedy of the Euro in Spanish and German
- Interview by Jeff Tucker
- Vorlesung an der Universität Münster am 12.05.2011
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Upcoming public lectures:
22. June "Die Tragödie des Euro" Hayek-Tage, Bayreuth.
22.-29. July "Mises University". Mises Institute, Auburn, Ala.
Monetary Policy as bad medicine: The volatile relationship between business cycles and asset prices
In this article published in Review of Austrian Economics, 21 (4) 2008: 283-300, I discuss the connection between Austrian Business Cycle Theory and asset prices, especially asset price bubbles.
Abstract:
Austrian business cycle theory has become an important point of focus in controversial mainstream discussions regarding the role of asset prices for monetary policy. In this article the relation between asset prices and the Austrian business cycle theory is examined. The analysis focuses on how central banking supports optimism, resulting in the redirection of entrepreneurial activity and knowledge via asset price bubbles. The crucial role of credit expansion for asset price booms is also analyzed. Following this analysis, the implications for monetary policy are deduced.
Key words: Austrian business cycle theory, asset prices, asset price bubble, herding behavior, credit expansion, monetary policy
B 53, E 32, E 44, E 58