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Structural changes in the modern economy have diminished the impact of traditional monetary and fiscal policies. For the past 90 years, the field of depression economics has been dominated by the Keynesian school of thought, which advocated the judicious use of monetary and fiscal policies by governments to artificially create aggregate demand to bring the economy roaring back from a recession. Today, economies are more diversified entities and large sections of these economies cannot be stimulated by monetary and fiscal policies. This paper discusses future of fiscal and monetary policy in an age of rapid technological change. The current scenario calls for the reintroduction of the Austrian School to the mainstream thought process for effectively managing future business cycles.

Relaying the Foundations of Depression Economics for the Technology Age: Reintroduction of the Austrian School of Thought