01729cas a2200241 a 4500 AALejournalIMF008042 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451841770 1018-5941 BD-DhAAL BD-DhAAL Oppers, S. The Austrian Theory of Business Cycles : Old Lessons for Modern Economic Policy? / S. Oppers. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (15 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper reviews the "Austrian" theory of the business cycle first proposed by Friedrich Hayek in the 1920s. His theory claimed that credit creation by monetary authorities would push investment beyond society's long-term willingness to save, creating a mismatch between supply and demand that would inevitably cause recession. The theory argued, moreover, that expansionary policies in recession could generally only postpone the necessary structural adjustment, making the subsequent correction more severe. Modern followers of this theory see Austrian features in a number of recent business cycles, including Japan in the 1980s and 1990s, and the more recent U.S. slowdown. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2002/002 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/002/001.2002.issue-002-en.xml IMF e-Library