The root of the current financial crisis was an artificially induced boom in the real economy, and asset-price markets that subsequently turned to bust. The bust led to a reduction in the values of many assets owned by banks.
The Free Market 27, no. 8 (August 2009) Icelandic Prime Minister Geir Haarde’s resignation this year marked the fi rst political casualty of the current financial crisis that resulted in the collapse of all major banks, a run on deposits, a stock market drop of 90 percent, empty grocery shelves,...
This paper examines what Austrian economists think about deflation and offers a critique of their views. This seems to be of particular importance because Austrians differ in their opinions about deflation,
Recognizing different types of savings allows for a more fruitful analysis of the business cycle. Sustainable investment activities must be financed by an equivalent amount of savings, both in length of availability and quantity.