Although much of the debate between Hayek and Keynes is today portrayed in terms of policy differences, those are not the most fundamental divisions between their conceptions of economics. I argue that their economics diverges most significantly in how they understand the role of capital in a...

The Austrian theory of the business cycle (henceforth ABC) frequently has been a target for critics of Austrian economics. In particular, a number of economists who are generally appreciative of other Austrian themes have singled out ABC as being, in one such critic's words, an “embarrassing...