Austrian and new classical business cycle theories: a comparative study through the method of rational reconstruction

Front Cover
E. Elgar, 1993 - Business & Economics - 260 pages
0 Reviews
Austrian and New Classical Business Cycle Theories makes a major contribution to recent developments in macroeconomic theory. In the last two decades, economics has experienced a remarkable shift in focus. Keynesian macroeconomics, at least in its Hickian IS/LM version, has been the ruling orthodoxy since World War II. Although it was sometimes closely challenged by monetarism, it retained its dominant position until the 1970s. In that decade, however, monetarist criticism received support from two other research traditions the Austrian School and New Classical Economics, which stressed the allocative efficiency of markets. Rudy van Zijp critically compares these two traditions. He builds his argument on very careful and sustained analysis of developments in the Austrian and new-classical explanations of cyclical fluctuations, dismissing the claim that the business cycle theories of the two traditions are simply variations on a theme. After a comprehensive description of what he terms the Hayek Programme and the Lucas Programme, he concludes by contrasting the different aims and methods of the two traditions.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.


The Roots of New Classicism
The Rise of New Classicism
Persistence Capital and Global Information

5 other sections not shown

Other editions - View all

Common terms and phrases

Bibliographic information