An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Thursday, December 5, 2013
Lord Keynes — Daniel Kuehn on the Austrian Business Cycle Theory
Interest rates are not determinative in the way ABCT assumes; consumption and investment move in tandem rather than inversely as ABCT assumes, and "if lengthening of the capital structure has validity, the capital structure actually 'lengthens and contracts as a consequence of the business cycle, rather than as its cause' (Kuehn 2013: 523)."
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