ABCs of the Austrian Business Cycle Theory

Should economists be more like geometers or weathermen? Philosophers or dentists? Prophets of doom or technicians? What did the "Great Recession" of 2007-2008 reveal about the limits of predicting and managing the ups and downs in the economy?

Featuring interviews with three economists, representing the three dominant schools of macroeconomic thought, this volume explores the complex movements of monetary policy and illuminates the often-confusing but increasingly relevant debate over the causes and consequences of economic recessions. The theories of the so-called “Austrian school” are brought into dialogue with those of John Maynard Keynes, Milton Friedman, as well as modern-day thinkers who are synthesizing the best ideas into a more nuanced but still partial understanding of the business cycle.

At first approximation, Robert Wenzel (editor of EconomicPolicyJournal.com) represents the Austrian school, Brad DeLong (Grasping Reality with Both Hands) represents the Keynesian school, and Scott Sumner (The Money Illusion) represents the Chicago school. 

Key terms are also explained in simplified “A-B-C” form, to dispel the jargon that often obscures the relatively simple underlying problem of monetary disequilibrium that is implicated in each analysis.

Hang on tight and enjoy the ride.