Expectation in Austrian business cycle theory: : Market share matters

• Autores: Nicolas Cachanosky
• Localización: Review of Austrian Economics, ISSN-e 1573-7128, Vol. 28, Nº. 2, 2015, págs. 151-165
• Idioma: inglés
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• Resumen

  • One of the most important objections to the Mises-Hayek business cycle theory is the rational expectations critique. The debate between supporters and critics of the Mises-Hayek theory has not paid sufficient attention to the problem of differences in expectations and the market share in the allocation of production factors. I represent financially the effects that occur under the Austrian business cycle theory in the market of production factors as well as how economic imbalances occur when a central bank follows an expansionary policy and entrepreneurs have different expectations.