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Keywords = Austrian business cycle theory

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23 pages, 1184 KB  
Article
The Inflationary Episode of 1603 in Light of the Austrian Economic Theory
by Cristóbal Matarán
Int. J. Financial Stud. 2025, 13(2), 89; https://doi.org/10.3390/ijfs13020089 - 22 May 2025
Viewed by 551
Abstract
This paper examines the inflationary episode of 1603 in Spain through the lens of Austrian Economic Theory. The study focuses on the effects of monetary expansion caused by the influx of precious metals from the Americas and its impact on real wages and [...] Read more.
This paper examines the inflationary episode of 1603 in Spain through the lens of Austrian Economic Theory. The study focuses on the effects of monetary expansion caused by the influx of precious metals from the Americas and its impact on real wages and raw material prices. Through the analysis of historical data and the application of statistical methods, this study identifies key relationships between monetary inflows, price levels, and income distribution. The findings indicate that the rapid expansion of the money supply triggered inflation, disproportionately impacting various sectors of society. Using the Cantillon Effect as a framework, the study explains how monetary expansion led to uneven wealth redistribution and production distortions. Additionally, the Austrian Business Cycle Theory highlights the consequences of artificial monetary growth, including the misallocation of resources and reduced purchasing power for wage earners. This study employs historical data from Edward J. Hamilton and other sources, utilizing normalization techniques and regression models to empirically examine the economic dynamics of this period. By bridging theoretical insights with empirical analysis, this paper contributes to a deeper understanding of early modern inflationary processes and offers lessons applicable to contemporary economic challenges. Full article
(This article belongs to the Special Issue Financial Stability in Light of Market Fluctuations)
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11 pages, 296 KB  
Review
Principles of Monetary & Financial Sustainability and Wellbeing in a Post-COVID-19 World: The Crisis and Its Management
by Jesús Huerta de Soto, Antonio Sánchez-Bayón and Philipp Bagus
Sustainability 2021, 13(9), 4655; https://doi.org/10.3390/su13094655 - 22 Apr 2021
Cited by 24 | Viewed by 6240
Abstract
This paper analyses the COVID-19 crisis and its management from the perspective of Austrian Economics. The attention focuses on the State’s coercive intervention according to the principles of political economy, capital theory and Austrian business economic cycles. The paper examines the specific case [...] Read more.
This paper analyses the COVID-19 crisis and its management from the perspective of Austrian Economics. The attention focuses on the State’s coercive intervention according to the principles of political economy, capital theory and Austrian business economic cycles. The paper examines the specific case of massive intervention by governments and, especially, central banks in monetary and financial markets to deal with the pandemic trying to mitigate its negative effects. The paper offers a critical analysis of government tax policies and the increase in public spending, considered as the panacea and universal remedy for the social troubles. This review concludes with a proposal to change the mainstream paradigm, thereby proposing a more sustainable and wellbeing economics. Full article
(This article belongs to the Special Issue Monetary and Financial Sustainability in a Post COVID-19 World)
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