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Austrian business cycle theory, Keyne's general theory, soaring wheat prices and sub-prime mortgage write-downs

Research output: Contribution to journalJournal articlepeer-review

Published
<mark>Journal publication date</mark>2008
<mark>Journal</mark>Quarterly Journal of Austrian Economics
Issue number2
Volume11
Number of pages4
Pages (from-to)119-122
Publication StatusPublished
<mark>Original language</mark>English

Abstract

Keynes’s presentation of own rates of interest on wheat and housing is set within Austrian business cycle theory, to show that soaring wheat prices and subprime mortgage writedowns are expected, when a monetary authority holds interest rates too low for too long. From that basis, further interest rate cuts are an unlikely remedy for a recession whose roots lie in a proliferation of credit.