Diego Arellano

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The Austrians argued that recessions are necessary to compensate for unwise decisions made during the booms that always precede the bursts. Austrians believe that the booms are created in the first place by the false signals sent to businesses when government’s “stimulate” economies with low interest rates.   So whereas the Keynesians look to mitigate the busts, Austrians look to prevent artificial booms.
How an Economy Grows and Why It Crashes
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