...what causes the business cycle, and especially the more pronounced "booms and busts". All the schools of monetary theory have their explanations. The Keynesians see the market economy as fundamentally unstable and in need of constant intervention, the Modern Monetary Theorists seem to think a bust is an unavoidable consequence of a prolonged imbalance of payments between the private and the public sector and the Austrians have a complex hypothesis about artificially low interest rates fooling entrepreneurs to "malinvest" in stages of production that are too far removed from the consumer...
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