Privredni ciklusi u austrijskoj teoriji
The Austrian Business Cycles Theory

Summary/Abstract: The last economic and financial crisis has renewed interest within economic science for some theories that are „out of fashion”. One of them is the Austrian theory of business cycles. According to the Austrian theory, money „creativity” causes business cycles. The Austrian theory argues that monetary sphere encourages economic cycle, whereas real sector constitutes it. Credit expansion causes deformation of price signals (affects relative prices and interest rates), leading to the production structure adjustment, which is manifested as a cycle. According to the Austrian theory, only an increase in savings leads to sustainable economic growth completely supported by the preferences and available resources. On the other hand, credit expansion causes a cyclical movement. In order to avoid cyclical disturbances, the Austrian theory proposes radical change of existing monetary institutions.

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