Austrian Business Cycle Theory (ABCT) purports to explain recurrent clusters of unsustainably lengthy investment projects following episodes of credit expansion by central banks. In this paper, we show that doing justice to the insights behind ABCT requires a disequilibrium-based restatement of...

Giménez Roche (forthcoming) attempts to restate Austrian Business Cycle theory (ABCT) through adding additional transmission channels to the interest rate channel traditionally emphasized by Austrian business cycle theorists. The key idea is that the business cycle is not sparked by a credit...

The most prominent previous versions of Austrian Business Cycle Theory (ABCT) are analyzed with the conclusion that, while containing interesting insights, were excessively aggregative and based on confusing constructs. This work develops a more realistic version of ABCT centered on the actual...