Austrian Government Cycle Theory

• Authors: Alan G. Futerman , William Barnett II , Walter E. Block

Abstracts

PL

Kiedy rząd odpowiadał za małą część gospodarki, autriacka teoria cykli gospodarczych (ABCT) była odpowiednia dla prywatnych przedsiębiorstw, które zawierały lwią część relacji biznesowych. Później w coraz większej ilości państw, udział gospodarki związanej z państwem wzrastał, a udział przedsiębiorstw prywatnych malał. Stąd nastał czas, aby zaprezentować nową koncepcję, czyli teorię cykli rządu Austrii (AGCT). Ten artykuł jest próbą ukazania tego właśnie fenomenu.

EN

When government accounted for a small proportion of the economy, the Austrian Business Cycle Theory (ABCT) was apropos because private enterprises comprised the lion’s share of commercial interactions. But, of late, in more and more countries, the share of the economy accounted for by the state has increased, and that by business fi rms, less and less. Thus, it is time, it is past time, to introduce a new concept, Austrian Government Cycle Theory (AGCT). The present paper is an attempt to move us in that direction.

Keywords

EN

business cycle; Austrian economics; depression; inflation

PL

cykle gospodarcze; ekonomia austriacka; depresja; inflacja

• Publisher: Wydawnictwo Adam Marszałek
• Journal: Świat Idei i Polityki
• Year: 2020
• Issue: 19
• Pages: 9-28

Dates

published

2020

Contributors

author

Alan G. Futerman

• University of the Latin American Educational Center

• https://orcid.org/0000000277028875

author

William Barnett II

• Loyola University New Orleans

• https://orcid.org/0000000225407224

author

Walter E. Block

• Loyola University New Orleans

• https://orcid.org/0000000322154791

References

• Bagus, P. (2003). The Commons and the Tragedy of Banking. Mises Daily, November 12. Available at http://mises.org/story/1373 (last visited June 13, 2019).
• Bagus, P. and Howden, D. (2010). Fractional Reserve Free Banking: Some Quibbles. The Quarterly Journal of Austrian Economics, 13(4), 29–55.
• Bagus, P. and Howden, D. (2011). Unanswered Quibbles with Fractional Reserve Free Banking. Libertarian Papers, 3(18), 1–24.
• Bagus, P., Howden, D., Block, W.E. (2013). Deposits, Loans and Banking: Clarifying the Debate. American Journal of Economics and Sociology, 72(3), 627–644,
• Available at https://onlinelibrary.wiley.com/doi/abs/10.1111/ajes.12023 (last visited June 13, 2019).
• Barnett, W. II and Block, W.E. (2005). In defense of fi duciary media-a comment; or, what’s wrong with “clown” or play money?. Quarterly Journal of Austrian Economics, 8(2), 55–69. Available at http://mises.org/journals/qjae/pdf/qjae8_2_4.pdf (last visited June 13, 2019).
• Barnett, W. and Block, W.E. (2008). Time deposits, dimensions and fraud. Journal of Business Ethics. Available at https://link.springer.com/article/10.1007/s10551-008-9976-9 (last visited June 13, 2019).
• Barnett, W. II and Block W.E. (2009A). Crash and Carry: Financial Intermediaries, the Intertemporal-Carry Trade, and Austrian Business Cycles. Ethics & Politics, XI, 1. pp. 455-469.
• Barnett, W. II, and Block, W.E. (2009B). Investment and Consumption: A critique of Rothbard’s claim that there can be no such thing as governmental ‘investment’”. Journal of Public Finance and Public Choice. 27(2–3), 183–188, http://www.walterblock.com/wp-content/uploads/InvestmentConsumption.pdf
• Baxendale, T. (2010). Free Banking, the Balance Sheet and Contract Law Approach. The Cobden Centre, March 15. Available at http://www.cobdencentre.org/2010/03/free-banking-the-balance-sheet-and-contract-law-approach/ (last visited June 13, 2019).
• Block, W.E. (2000A). Watch Your Language. Mises Daily, February 21. Available at https://mises.org/library/watch-your-language (last visited July 16, 2019).
• Block, W.E. (2000B). Word Watch. Mises Daily, April 20. Available at http://www.mises.org/fullstory.asp?control=414&FS=Word+Watch (last visited April 6, 2020).
• Block, W.E. (2002). All Government is Excessive: A Rejoinder to ‘In Defense of Excessive Government’ by Dwight Lee”. Journal of Libertarian Studies, 16(3), 35–
• Available at https://mises.org/library/all-government-excessive-rejoinder-dwightlees-defense-excessive-government (last visited July 16, 2019).
• Block, W.E. (2015). The rent seeker. Romanian Economic and Business Review, 10(3), 7–14, Fall. Available at http://www.rebe.rau.ro/REBE_10_3_2015.pdf (last visited July 16, 2019).
• Block, W.E. (2019). Stop Trying to Make Coal Great Again. When it comes to coal, President Trump seems to care more about politics than free-market principles. The New York Times, June 4. Available at https://www.nytimes.com/2019/06/04/opinion/trump-coal.html (last visited July 16, 2019).
• Block, W.E. and Barnett W. II. (2008). Continuums. Journal Etica e Politica / Ethics & Politics, 1, 151–166, June. Available at http://www2.units.it/~etica/2008_1/BLOCKBARNETT.pdf (last visited July 16, 2019).
• Block, W. and Caplan, B. (2008). Walter E. Block versus Bryan Caplan on Fractional Reserve Banking. Lew Rockwell, Nov 1. Available at http://www.lewrockwell.com/block/block110.html (last visited June 13, 2019).
• Block, W. versus Posner, E. (2008). Posner vs. Block on fractional reserve banking. Lew Rockwell, November, 29. Available at http://www.lewrockwell.com/block/block114.html (last visited June 13, 2019).
• Block, W. and Garschina, K.M. (1996). Hayek, Business Cycles and Fractional Reserve Banking: Continuing the De-Homogenization Process. Review of Austrian Economics, 9(1), 77–94. Available at http://www.mises.org/journals/rae/pdf/rae9_1_3.pdf (last visited June 13, 2019).
• Cwik, P.F. (2004). An Investigation of Inverted Yield Curves and Economic Downturns. PhD Dissertation. May 14. Auburn University.
• Cwik, P.F. (2008). Austrian Business Cycle Theory: A Corporate Finance Point of View. The Quarterly Journal of Austrian Economics, 11, 60-68.
• Davidson, L. (2008). Fractional Reserve Banking Is Indeed Fraudulent. Lew Rockwell, November 17. Available at http://www.lewrockwell.com/orig9/davidson-l1.html (last visited June 13, 2019).
• Davidson, L. and Block, W.E. (2011). The Case Against Fiduciary Media: Ethics Is The Key. The Journal of Business Ethics, 98(3), 505–511. Available at http://www.springerlink.com/content/j76323752648720g/ (last visited June 13, 2019).
• DiLorenzo, T.J. and Block, W.E. (2017). An Austro-Libertarian Critique of Public Choice. Addleton Academic Publishers.
• French, D.E. (2009). Early Speculative Bubbles and Increases in the Supply of Money. Second Edition. The Ludwig Von Mises Institute: Auburn.
• Garrison, R. (2001). Time and Money: The Macroeconomics of Capital Structure. Routledge.
• Gjerstad, S.D. and Vernon, L.S. (2014). Rethinking Housing Bubbles. Cambridge University Press.
• Hanke, S. (2008). Banking Crises: Plus Ça Change… Globe Asia, November, https://www.cato.org/publications/commentary/banking-crises-plus-c-change (last visited June 13, 2019).
• Hayek, F.A. (1931). Prices and Production. London: Routledge.
• Hayek, F.A. (1966). Monetary Theory and The Trade Cycle. Auburn: The Ludwig Von Mises Institute.
• Hazlitt, H. (1979). Gold versus Fractional Reserves Part 1. Mises Daily, in The Freeman, May. Available at https://mises.org/library/gold-versus-fractional-reserves (last visited April 6, 2020).
• Hollenback, F. (2013). Insuring Deposits, Ensuring Insolvency. Mises Daily, July 24. Available at http://mises.org/daily/6487/Insuring-Deposits-Ensuring-Insolvency (last visited June 13, 2019).
• Hollenback, F. (2014). The Fraud in Fractional Reserve Banking. Mises Canada Daily, November 26. Available at http://us2.campaign-archive2.com/?u=7e6cc2f6072b7ebfaa847047f&id=189c14aa12&e=53fc31c1bb (last visited June 13, 2019).
• Hoppe, H.-H. (1994). How is Fiat Money Possible? or, The Devolution of Money and Credit. Review of Austrian Economics, 7(2), 49–74.
• Hoppe, H.-H., G. Hülsmann, W.E. Block. (1998). Against Fiduciary Media. Quarterly Journal of Austrian Economics, 1(1), 19–50. Available at http://www.mises.org/journals/qjae/pdf/qjae1_1_2.pdf (last visited June 13, 2019).
• Howden, D. (2013). A Simple Math Question for Bankers. Mises Canada Daily, December 28. Available at http://mises.us2.list-manage1.com/track/click?u=7e6cc2f6072b7ebfaa847047f&id=b10182ff5e&e=cb339c58df; http://www.economicpolicyjournal.com/2013/12/the-best-critique-i-have-ever-read.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+economicpolicyjournal%2FKpwH+%28EconomicPolicyJournal.com%29 (last visited June 13, 2019).
• Huerta de Soto, J. (1995). A Critical Analysis of Central Banks and Fractional-Reserve Free Banking from the Austrian Perspective. Review of Austrian Economics, 8(2), 25–38.
• Huerta de Soto, J. (1998). A Critical Note on Fractional-Reserve Free Banking. The Quarterly Journal of Austrian Economics, 1(4), 25–49.
• Huerta de Soto, J. (2006). Money, Bank Credit and Economic Cycles. Auburn AL.: Ludwig von Mises Institute.
• Huerta de Soto, J. (2010). Economic Recessions, Banking Reform, and the Future of Capitalism. Mises Daily, November 1. Available at http://mises.org/daily/4817 (last visited June 13, 2019).
• Huerta de Soto, J. (2012). Recesiones Económicas, Reforma Bancaria y el Futuro del Capitalismo. Procesos de Mercado: Revista Europea de Economía Política, IX(2), 431–456.
• Huerta de Soto, J. (2014). Crisis Financiera: El Fracaso de la Reforma Contable. Mises Hispano. Febrero, 3. Available at http://www.miseshispano.org/2014/02/crisis-financiera-el-fracaso-de-la-reforma-contable/ (last visited March 18, 2018).
• Huerta de Soto, J. (2018). What Free-Banking Advocates Get Wrong. Mises Wire, February 26. Available at https://mises.org/wire/what-free-banking-advocatesget-wrong (last visited June 13, 2019).
• Hülsmann, J.G. (1996). Free Banking and the Free Bankers. Review of Austrian Economics, 9(1), 3–53. Available at http://www.mises.org/journals/rae/pdf/rae9_1_1.pdf (last visited June 13, 2019).
• Hülsmann, J.G. (1998). Toward a General Theory of Error Cycles. The Quarterly Journal of Austrian Economics, 1(4), 1–23.
• Hülsmann, J.G. (2000). Banks Cannot Create Money. The Independent Review: A Journal of Political Economy, 5(1), 101–110. Available at http://www.independent.org/pdf/tir/tir_05_1_hulsman.pdf (last visited June 13, 2019).
• Hülsmann, J.G. (2002). Free Banking Fractional Reserves: Reply to Pascal Salin. Review of Austrian Economics, 1(3). Available at http://www.mises.org/journals/qjae/pdf/qjae1_3_8.pdf (last visited June 13, 2019).
• Hülsmann, J.G. (2003). Has Fractional-Reserve Banking Really Passed the Market Test?. Independent Review 7/3, Winter, 399–422. Available at http://www.independent.org/publications/tir/article.asp?a=90 (last visited June 13, 2019).
• Hülsmann, J.G. (2008). The Ethics of Money Production. Auburn AL: Ludwig von Mises Institute.
• Kirzner, I.M. (1990). The ‘Austrian’ Perspective on the Crisis. In: Austrian Economics, Vol. 1, Edward Elgar, 191–202.
• Lee, Y., Sung, T. (2007). Fiscal Policy, Business Cycles and Economic Stabilisation: Evidence from Industrialised and Developing Countries. Fiscal Studies, 28(4), 437–462.
• Machlup, F. (1940). The Stock Market, Credit and Capital Formation. William Hodge & Co.
• Mises, L. Von. (1953). The Theory of Money and Credit. New Haven: Yale University Press.
• Mulligan, R.F. (2006). An Empirical Examination of Austrian Business Cycle Theory. The Quarterly Journal of Austrian Economics, 9(2), 69–93.
• Murphy, R.P. (2010). The Fractional-Reserve Banking Question. Mises Daily, June 14. Available at http://mises.org/daily/4499 (last visited June 13, 2019).
• Norberg, J. (2009). Financial Fiasco: How America’s Infatuation with Home Ownership and Easy Money Created the Economic Crisis. Washington: Cato Institute.
• North, G. (2009). What Is Money? Part 5: Fractional Reserve Banking. Lew Rockwell, October 10. Available at http://www.lewrockwell.com/north/north769.html (last visited June 13, 2019).
• Oppers, S.E. (2002). The Austrian Theory of Business Cycles: Old Lessons for Modern Economic Policy?. IMF Working Papers. January.
• Polleit, T. (2010). The Faults of Fractional-Reserve Banking. Mises Daily, December 23. Available at http://mises.org/daily/4880 (last visited June 13, 2019).
• Pinto, E.J. (2010A). Sizing Total Federal Government and Federal Agency Contributions to Subprime and Alt-A Loans in U.S. First Mortgage Market as of 6.30.08. AEI Online, October 11. Available at www.aei.org/docLib/PintoGovernmentHousingPoliciesintheLead-uptotheFinancialCrisis3Memoranda2511.pdf. (last visited March 6, 2018).
• Pinto, E. (2010B). Government Housing Policies in the Lead-up to the Financial Crisis: A Forensic Study. AEI Online, November 4. Available at www.aei.org/docLib/GovernmentHousing-Policies-Financial-Crisis-Pinto-102110.pdf (last visited March 6, 2018).
• Reisman, G. (1996). Capitalism. Ottawa, Il.: Jameson Books, 954–963.
• Reisman, G. (2009). “A Pro-Free-Market Program for Economic Recovery”. Mises Daily, November 20. Available at http://mises.org/daily/3870 (last visited June 13, 2019).
• Rothbard, M.N. (1969). Economic Depressions: Their Cause and Cure. Lansing, Michigan: Constitutional Alliance. Available at https://www.lewrockwell.com/1970/01/murray-n-rothbard/what-causes-an-economic-depression/ (last visited April 6, 2020).
• Rothbard, M.N. (1991). The Case for a 100 Percent Gold Dollar. In Search of a Monetary Constitution (Leland B. Yeager, ed.), Cambridge, MA: Harvard University Press, 94–136, and Auburn, AL: Ludwig von Mises Institute. See also “The Logic of Action One”, 364–384. Available at http://mises.org/story/1829; http://mises.org/rothbard/100percent.pdf (last visited June 13, 2019).
• Rothbard, M.N. (2009). Man, Economy and State. Auburn: Scholar’s Edition, Second Edition. Ludwig Von Mises Institute.
• Rothbard, M.N. (2000). America’s Great Depression. Auburn: The Ludwig Von Mises Institute.
• Rothbard, M.N. (2008). What Has Government Done With Our Money. Auburn: The Ludwig Von Mises Institute.
• Rothbard, M.N. (2008). The Mistery of Banking. Auburn: The Ludwig Von Mises Institute.
• Rothbard, M.N. (2004). Man, Economy, and State: A Treatise on Economic Principles with Power and Market, Scholar’s Edition. Auburn, AL: Ludwig von Mises Institute.
• Salerno, J.T. (1987). The True Money Supply: A Measure of the Supply of the Medium of Exchange in the US Economy. Austrian Economics Newsletter, Spring.
• Salerno, J.T. (2010A). Money, Sound and Unsound. Auburn: Ludwig von Mises Institute.
• Salerno, J.T. (2010B). White contra Mises on Fiduciary Media. Mises Daily, May 14. Available at http://mises.org/daily/4389 (last visited June 13, 2019).
• Salerno, J.T. (2012). A Reformulation of Austrian Business Cycle Theory in Light of the Financial Crisis. The Quarterly Journal of Austrian Economics. 15(1), 3–44.
• Salerno, J.T. (2011). Dr. Joseph Salerno Explains Everything You Ever Wanted to Know About Money (But Were Afraid to Ask). The Daily Bell, July 3. Available at http://www.thedailybell.com/2602/Anthony-Wile-Dr-Joseph-Salerno-Explains-Everything-You-Ever-Wanted-to-Know-About-Money-But-Were-Afraid-to-Ask (last visited June 13, 2019).
• Salerno, J.T. (2016). The Fed and Bernanke Are Wrong About the Natural Interest Rate. Mises Wire, June 26. Available at https://mises.org/wire/fed-and-bernankeare-wrong-about-natural-interest-rate (last visited March 19, 2018).
• Selgin, G. (2020). The Menace of Fiscal QE. Cato Institute.
• White, L.H. (2010). Credit-Rating Agencies and the Financial Crisis: Less Regulation of CRAs is a Better Response. Journal of International Banking Law and Regulation, 25(4), 170. Available at https://www.stern.nyu.edu/sites/default/files/assets/documents/con_039549.pdf (last visited March 6, 2018).
• White, L.H. (2008A). How Did We Get into This Financial Mess?. Cato Institute Briefi ng Papers, No. 110, November 18. Available at http://object.cato.org/sites/cato.org/files/pubs/pdf/bp110.pdf (last visited March 6, 2018).
• White, L.H. (2008B). What Really Happened?. Cato Unbound, “What Happened? Anatomies of the Financial Crisis”, Lead Essay, December 2. Available at http://www.cato-unbound.org/2008/12/02/lawrence-h-white/what-really-happened (last visited March 6, 2018).
• Woods, T.E. Jr. (2009). Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse. Washington D.C.: Regnery Publishing.

Identifiers

DOI

10.15804/siip202001

Biblioteka Nauki

2190939