Work detail

Business Cycle Theory from the Point of View of the Austrian School of Economics

Author: Bc. Lukáš Malárik
Year: 2011 - summer
Leaders: Mgr. Pavel Ryska MPhil
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.

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