Argumentation talk:ABCT: Difference between revisions
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Pestergaines (talk | contribs) Summaries of ABCT. |
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==Example== | ==Example== | ||
Thrown in an example from [http://oneminute.rationalmind.net/business_cycles/ The One Minute Case for the Austrian Business Cycle Theory], which is in the public domain and was kindly provided by David Veksler - big thanks to him! [[User:Pestergaines|Pestergaines]] 01:11, 24 November 2011 (MSK) | Thrown in an example from [http://oneminute.rationalmind.net/business_cycles/ The One Minute Case for the Austrian Business Cycle Theory], which is in the public domain and was kindly provided by David Veksler - big thanks to him! [[User:Pestergaines|Pestergaines]] 01:11, 24 November 2011 (MSK) | ||
==Summarizing the ABCT== | |||
Placeholder, until I know where to use it, here's [http://mises.org/Community/forums/t/19895.aspx ABCT in a few minutes] with some good and short summaries. Also a good summary [http://clubtroppo.com.au/2012/05/07/is-political-cynicism-poison-for-the-left/ here]: | |||
:The Austrian theory is that interests rates, and prices in general serve a purpose to communicate intentions between buyers and sellers. If interest rates are driven by force to a significantly different value than the value that the market would naturally set, then this jams the signal and encourages malinvestment of capital (i.e. starting long-term high-commitment projects that are in fact not useful but seem to be useful at the time, based on incorrect information). This is made worse because the inflationary "free money" that washes into the system due to artificially low interest rates doesn’t wash evenly... it tends to flow to people who get themselves into the right place at the right time, thus Cantillon effects further encourage malinvestment. | |||
For later use. [[User:Pestergaines|Pestergaines]] 11:05, 13 May 2012 (MSD) | |||
Revision as of 07:05, 13 May 2012
Super idea!
P.G., am loving the concept. Something has been brewing in my mind as well on a different matter. Will consider further, now that I have seen your version. More later. :) -- RayBirks 16:06, 16 January 2011 (CST)
- Thanks! This has been thrown about by many people in many places, but nobody ever seemed to go for it. Let's see how far this gets! (Let us know when you make your thing. :) ) Pestergaines 16:51, 16 January 2011 (CST)
Example
Thrown in an example from The One Minute Case for the Austrian Business Cycle Theory, which is in the public domain and was kindly provided by David Veksler - big thanks to him! Pestergaines 01:11, 24 November 2011 (MSK)
Summarizing the ABCT
Placeholder, until I know where to use it, here's ABCT in a few minutes with some good and short summaries. Also a good summary here:
- The Austrian theory is that interests rates, and prices in general serve a purpose to communicate intentions between buyers and sellers. If interest rates are driven by force to a significantly different value than the value that the market would naturally set, then this jams the signal and encourages malinvestment of capital (i.e. starting long-term high-commitment projects that are in fact not useful but seem to be useful at the time, based on incorrect information). This is made worse because the inflationary "free money" that washes into the system due to artificially low interest rates doesn’t wash evenly... it tends to flow to people who get themselves into the right place at the right time, thus Cantillon effects further encourage malinvestment.
For later use. Pestergaines 11:05, 13 May 2012 (MSD)