The Ludwig von Mises Institute South Africa defends the market economy, private property, sound money, and peaceful international relations. We believe government intervention is economically and socially destructive. This is our blog.
Quotable Mises
Help the cause of economic liberty and peace in Africa
Follow us on twitter
Like us on Facebook
-
Recent blog posts
Recent Comments
- Joe Johansen on Don’t forget SARB QE: Part 2
- MarleyMarx on Crisis On The Cape Flats Caused By Decades of Social Engineering
- Daniel on BOE: “Money creation in the modern economy”
- iakovos on New Documentary Explains Global Financial Crisis From the Perspective of the Austrian School of Economics
- Blah on Mandela: The Great Symbol of South Africa’s Unfinished Fight For Liberty
Archives
Mises SA Articles- Say’s Law, Credit Expansion & the Business Cycle March 14, 2014
- Don’t Stop Til You Get Enough December 5, 2013
- Eersteklas ekonomiese satire: Die Petisie van die Kersmakers November 25, 2013
- Circle Bastiat
Fraud. Why the Great Recession?
Watch this crowdfunded documentary produced by Austrian school economist Jesus Huerta de Soto, author of "Money, Bank Credit, and Economic Cycles," on what caused the Great Recession. Click to watch it free online.
Tag Archives: malinvestment
Regulatory Meddling in the Credit Industry Never Ends Well
Yesterday, Tuesday the 1st of April 2014, marked the day when “credit amnesty” kicked in for millions of South Africans. The dispensation requires credit bureaus by law to expunge consumer credit history on accounts that had been in default and … Continue reading
Posted in Russell Lamberti
Tagged credit, credit amnesty, efficiency, information, malinvestment, regulation, South Africa
Leave a comment
Fiat Money and Business Cycles in Emerging Markets
Roger McKinney has a good piece over at Mises.org. It is useful because it describes very simply how Fed policy with the world’s reserve currency can internationalise the business cycle. This is relevant in particular for our African and South African … Continue reading
Posted in Russell Lamberti
Tagged ABCT, Africa, business cycle, capital controls, Dollar, exchange rates, Federal Reserve, malinvestment, monetary policy
Leave a comment
RE: On The Empirical Relevance of Austrian Business Cycle Theory
My friend Grant McDermott, to whom I wrote why I think the empirical relevance of ABCT by Lester/Wolff may produce “mixed” results replied to me in this post. This is a quick one to elaborate my points. Firstly Grant says … Continue reading
Posted in Chris Becker
Tagged ABCT, business cycle, central bank, fractional reserve banking, inflation, malinvestment, monetary policy
Leave a comment
The Subsistence Fund and ABCT
I alluded in an earlier post to Eduard Braun’s explanation of Mises’ use of the concept of the “subsistence fund”, in Mises’ 1912 work The Theory of Money and Credit, to explain the workings of the business cycle and why some investment cycles are … Continue reading
Posted in Russell Lamberti
Tagged ABCT, business cycle, malinvestment, mises, subsistence fund
Leave a comment
RE: On The Empirical Relevance of Austrian Business Cycle Theory
Chris: Further to your useful post, it goes without saying that Austrian methodology is wholly different from the empirical analysis employed in the Lester/Wolff study. Three points on this: Firstly, it is interesting that despite all the data shortcomings, the authors found … Continue reading
Leon Louw Is Right…In A Sound Money World cont.
In response to my article “Leon Louw Is Right…In A Sound Money World“, Katy asks the following: I am fairly new to the field of rigorous economics, so please assist me if you may. You said, “So while we might … Continue reading
Leon Louw Is Right…In A Sound Money World
Leon Louw has an article in today’s Business Day titled, “Econobabble has everyone worried over nothing.” Leon makes an essentially sound point, which is that the notion of a trade ‘deficit’ or ‘surplus’ is largely bogus. Louw is particularly debunking … Continue reading
Posted in Uncategorized
Tagged business cycle, central bank, fractional reserve banking, inflation, malinvestment, monetary policy, Money Printing, trade
5 Comments
Jesus Huerta de Soto on what drives stock markets
“Fluctuations in the value of capital goods, which arise from variations in saving and the interest rate, also tend to spread to the securities which represent these goods, and thus to the stock markets where they are traded. Hence an … Continue reading
In Defense of Full Reserve Free Banking
In her paper Against Monetary Disequilibrium Theory And Fractional Reserve Free Banking, Oxford graduate Laura Davidson takes on the famous fractional reserve free banking (FRFB) school, represented most formidably by the theorists Selgin, White and Horwitz. Specifically she addresses one of the cornerstones … Continue reading
Posted in Uncategorized
Tagged ABCT, business cycle, fractional reserve banking, malinvestment
4 Comments
Defending ABCT
In the Summer 2012 edition of The Quarterly Journal of Austrian Economics, Lucas Engelhardt tackles an old criticism of Austrian Business Cycle Theory (ABCT) in his paper Expansionary Monetary Policy and Decreasing Entrepreneurial Quality. The criticism is based on Rational Expectations … Continue reading
Posted in Uncategorized
Tagged ABCT, business cycle, malinvestment, Rational Expectations
Leave a comment