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0 sats \ 0 replies \ @Rothbardian_fanatic 4 Jan \ on: Interest Rates, Computational Boosts, and the Austrian Theory of the Business Politics_And_Law
This article is the basis for Austrians to say that Central Banks and commercial banks are the proximate cause of business cycles. They alter the natural rate of interest, thereby altering the perceptions of entrepreneurs, thus starting projects where they should not start them because of the low interest rates hurdle is too low. Altered interest rates thus cause the business cycle of boom and bust.