7086079000 No.13
>>12This looks pretty interesting, what exactly is it?
c216b7caff No.14
Roger W Garrison's representation of the business cycle theory. The triangle on the top left was originally made by Hayek tho.
In summary, it shows the chain reaction from the central bank lowering interest rates through money printing (increasing the supply on loanable funds) to the eventual intertemporal disequilibrium (ID) that occurs. ID is basically just the time preferences of consumers and the market structure of production becoming misaligned, which in summary attempts to 1. use more resources than avaliable in the economy (hence, what is known as a 'resource crunch' occurs at the bust phase) and 2. supply goods to consumers over a period of time that they're not even saving up for/planning to delay their consumption for.
tl;dr: money printer go brr, interest rates crash, and entrepreneurs (investment) vs consumers (consumption) basically get isolated from each others' reality.
c216b7caff No.15
>>13sorry, it seems i didnt reply correctly. never actively spoken on an imageboard before tbh lol.
d8f910a2fd No.20
>>12kinda coal.
Hayek's version of the ABCT already suffers from the issue in Mises' formulation, where it assumes static expectations on behalf of capital owners' when engaging in investment, but the whole idea that the production structure can even be modeled assumes capital formation has consistent periods of transformation, when in fact, it is constantly changing to co-ordinate to the plans of individuals within the market, such that it is too complex to predict changes on a chart.
95ff6c2b7b No.22
>>20The simplified models exist to isolate the mechanism of the boom-and-bust cycle, not to deny the complexity that you emphasized, the theory’s explanatory power lies in the qualitative pattern of boom and bust, not in predictive geometry.