The government did it: The Austrian Theory of the Trade Cycle and other essays


This wonderfully short book of just 120 pages explains through four essays, the influence of money and the capital structure of production on the trade cycle.

The authors are Mises, Haberler, Rothbard and Hayek. Each essay is short, approachable and insightful, while pointing to more detailed literature. Consider for example, Rothbard, remembering that here “inflation” is an increase in the money supply:

So now we see, at last, that the business cycle is brought about, not by any mysterious failings of the free market economy, but quite the opposite: By systematic intervention by government in the market process. Government intervention brings about bank expansion and inflation, and, when the inflation comes to an end, the subsequent depression-adjustment comes into play.

The book is available free online here.

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