My trouble with ABC [Austrian business cycle theory] is that its ... falsifiable content has been falsified. According to ABC, inflation should produce an overinvestment boom. The stagnation decade of the 1970s does not fit: it gave us inflation but no acceleration of capital accumulation....
That's Leijonhufvud [1986, p. 417], cited by Roger Garrison. Is anyone aware of any Austrian's that have responded to this in print?
Recent Comments