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)."

Social Democracy For The 21St Century: A Post Keynesian Perspective
Daniel Kuehn on the Austrian Business Cycle Theory
Lord Keynes

Brad DeLong — Malinvestment In The Recession?

I think Daniel Kuehn mistakes Evan Soltas's point. Soltas is arguing not against the fundamentalist Austrians and their claims that the depression is caused by previous malinvestment in the boom. Soltas is arguing against the Martin Feldstein's who claim that interest rates need to be high during the bust in order to guard against additional malinvestments committed then.

Grasping Reality
Malinvestment In The Recession?
J. Bradford DeLong | Professor of Economics, UCAL Berkeley