New edition with an introduction by Roger Garrison and an index. Booms and busts are not endemic to the free market, argues the Austrian theory of the business cycle, but come about through manipulation of money and credit by central banks. In this monograph, Austrian giants explain and defend the theory against alternatives. Includes essays by Mises, Rothbard, Haberler, and Hayek. In his later years, Professor Haberler distributed many of these monographs to friends and associates.
This volume includes:
* Introduction: The Austrian Theory in Perspective (Roger W. Garrison)
* The ""Austrian"" Theory of the Trade Cycle (Ludwig von Mises)
* Money and the Business Cycle (Gottfried Haberler)
* Economic Depressions: Their Cause and Cure (Murray N. Rothbard)
* Can We Still Avoid Inflation? (Friedrich A. Hayek)
* The Austrian Theory: A Summary (Roger W. Garrison)
Economic Depressions: Their Cause and Cure
Murray N. Rothbard
We live in a world of euphemism. Undertakers have become "morticians," press agents are now "public relations counsellors" and janitors have all been transformed into "superintendents." In every walk of life, plain facts have been wrapped in cloudy camouflage.
No less has this been true of economics. In the old days, we used to suffer nearly periodic economic crises, the sudden onset of which was called a "panic," and the lingering trough period after the panic was called "depression."
The most famous depression in modern times, of course, was the one that began in a typical financial panic in 1929 and lasted until the advent of World War II. After the disaster of 1929, economists and politicians resolved that this must never happen again. The easiest way of succeeding at this resolve
was, simply to define "depressions" out of existence. From that point on, America was to suffer no further depressions. For when the next sharp depression came along, in 1937-38, the economists simply refused to use the dread name, and came up with a new, much softer-sounding word: ""recession."" From that point on, we have been through quite a few recessions, but not a single depression.
But pretty soon the word ""recession"" also became too harsh for the delicate sensibilities of the American public. It now seems that we had our last recession in 1957-58. For since then, we have only had "downturns," or, even better, "slowdowns,"or "sidewise movements." So be of good cheer; from now on, depressions and even recessions have been outlawed by the semantic fiat of economists; from now on,
the worst that can possibly happen to us are "slowdowns." Such are the wonders of the "New Economics."
Richard M. Ebeling
Richard M. Ebeling is Professor of Economics at Northwood University. He was formerly president of The Foundation for Economic Education (2003–2008), was the Ludwig von Mises Professor of Economics at Hillsdale College (1988–2003) in Hillsdale, Michigan, and served as vice president of academic affairs for The Future of Freedom Foundation (1989–2003).
Born in New York City in 1950, he received his B.A. in economics from California State University, Sacramento, and his M.A. in economics from Rutgers University. Professor Ebeling has been a lecturer in economics at the National University of Ireland at Cork (1981–1983), and assistant professor of economics at the University of Dallas (1984–1988).
While serving as vice president for The Future of Freedom Foundation, Professor Ebeling co-edited and contributed to five books published by The Future of Freedom Foundation and he wrote a monthly article and book review for FFF's publication Freedom Daily. His articles have also appeared in The Freeman,Reason, Libertarian Review, Critical Review, Political Studies, Advances in Austrian Economics, The Austrian Economics Newsletter, International Journal of World Peace, American Journal of Economics and Sociology,and numerous other publications. As well, his articles have been published in Brazil, England, Austria, Poland, Lithuania, Hungary, and Russia.
Professor Ebeling also lectures widely on the problems of economic reform and change in the former Soviet Union and Eastern Europe, as well as lecturing on economic policy in the United States, particularly on the topics of monetary policy, government regulation and the welfare state, and the economics of growth, stability and international trade.