Original scientific paper

https://doi.org/10.2478/zireb-2018-0016

Lessons from a Review of Money, Banking, and the Business Cycle

Brian P. Simpson orcid.org/0000-0002-8643-3784 ; Department of Finance and Economics, School of Business and Management, National University, La Jolla, California, USA

Abstract

Shawn Ritenour provides a review of my two-volume book titled Money, Banking, and the Business Cycle in the winter 2016 issue of The Quarterly Journal of Austrian Economics. This paper constitutes a response to some of the criticisms of the book in his review. In this response, I discuss topics such as the nature of profits, the sustainability of changes in time preference, the role of changes in prices versus changes in spending in the business cycle, the relationship between interest rates and the rate of profit, the nature of fraud, and the nature of value. I also discuss whether the structure of production can be measured using the average period of production. I address other issues raised by Ritenour as well. This discussion sheds light on Austrian business cycle theory and the nature of the business cycle.

Keywords

Austrian business cycle theory; nature of profits; time preference; interest rates; equation of exchange; nature of value; average period of production

Hrčak ID:

209087

URI

https://hrcak.srce.hr/209087

Publication date:

21.11.2018.

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