Business Cycle Theory from the Point of View of the Austrian School of Economics
| Author: | Bc. Lukáš Malárik |
|---|---|
| Year: | 2011 - summer |
| Leaders: | MPhil Pavel Ryska Ph.D. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 46 |
| Awards and prizes: | |
| Link: | |
| Abstract: | This bachelor thesis analyzes business cycle theory from the point of view of the Austrian school of economics which sees the main problem in expansion (boom) driven by low interest rates, contrary to mainstream school, which considers the time of recession with insucient expenditures as the main problem. Therefore, in the rst part of this thesis is provided theoretical framework which describes the main features of the Austrian business cycle theory. After the theoretical explanation follows the second, practical, part of the thesis in which I employed the theory from the rst part in order to interpret the situation in Japanese economy since 1980 until present. The main reason is that after the bust of 1990 is Japanese economic still not fully recovered in spite of many recovery attempts based on mainstream macroeconomic approach. At the end of the thesis it is shown that the Austrian business cycle theory is capable of interpreting the economic development in Japan as well as propose solutions that will lead to recovery. |
