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THE AUSTRIANS AND THE CRISIS
Author(s) -
Miller Robert C. B.
Publication year - 2009
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2009.01915.x
Subject(s) - economics , recession , financial crisis , great depression , competition (biology) , government (linguistics) , monetary economics , relevance (law) , international economics , government spending , business cycle , current account , economic policy , financial system , macroeconomics , market economy , exchange rate , welfare , political science , ecology , linguistics , philosophy , law , biology
The Austrian economists' analysis of the trade cycle and the Great Depression has relevance for the current global economic crisis. Excessive bank lending leads to unsustainable distortions in the economy causing the recession, which government spending can do little to mitigate. The long‐run solution is a banking system with a high reserve ratio or competition in currencies.