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Alternative title:

The theory of economic cycle of Austrian school of economics and the financial crisis in 2008

Subject and Keywords:

economic cycle   Austrian school of economics   financial crisis in 2008   theory

Abstract:

In the introduction to our paper we start with explaining economic cycle and describing its stages. Then, we will briefly present neoclassical theory of economics treatment of the cycles and reasons for its existence. Presented views had been propagated by two most popular representatives of “Austrian school of economics”: Ludwig von Mises and Friedrich August von Hayek. In the further part, we will verify whether theorems of this school were truly reflected in the real economic situation which appeared in the year 2008. For this purpose we will use methodology which was firstly practiced by other economist – Jesus Huerta de Soto as well as empirical data derived from observations of the economy of the United States. Our analysis proved that the theory is in accordance with the real situation. Even though any crisis is a very complex phenomenon, we can claim that the theories of economic cycle created by “Austrian school of economics” may be considered to be the reason to cause the financial crisis in the USA in 2008.

Place of publishing:

Wrocław

Publisher:

Wydawnictwo Uniwersytetu Wrocławskiego

Date issued:

2009

Date copyrighted:

2009

Identifier:

ISSN 1733-5779   ISSN 0239-6661

Source:

PAd 102060 II

Language:

eng   pol

Relation:

Studenckie Prace Prawnicze, Administratywistyczne i Ekonomiczne, ISSN 1733-5779. Nr 6 (2009), s. 137-148

Is version of:

Czasopisma Naukowe w Sieci

Rights holder:

Copyright by Wydawnictwo Uniwersytetu Wrocławskiego Sp. z o.o.