Re: Explain to an idiot the benefits of going back to the Gold standar
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I think you might be misunderstanding Austrian Business Cycle theory a bit. Austrians believe that artificially lower interest distort the capital market by simultaneously decreasing the supply of savings while increasing the demand for investment. Austrians primarily focus on the investment side of this distortion. They believe that businessman will unwittingly take on debt to develop unprofitable capital projects during the boom phase. This "malinvestment" is what causes the bust phase which occurs during the time period when these projects are found to be unprofitable and then liquidated.
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i wasn't so clear about it, but this is what i meant by "dislocations"
Barron
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