Max Hillebrand on Nostr: The Austrian Business Cycle Theory explains how central banks causing artificially ...
The Austrian Business Cycle Theory explains how central banks causing artificially low interest rates (with printing "fake money") trick businesses into over-investing in unsustainable projects during a boom phase. When reality hits and these bad investments fail, the economy crashes into recession as it purges the distortions, with the market naturally correcting itself through bankruptcies and reallocation of resources.
Published at
2025-02-06 08:20:36Event JSON
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