Common critique of the Austrian business cycle theory states that the Austrian cycle could not be initiated under the rational expectations hypothesis. This thesis therefore investigates the role of price expectations of entrepreneurs in the Austrian cycle theory. We conclude that this theory might be compatible with rational expectations only under several assumptions. The rational expectations hypothesis is, however, evaluated rather critically concluding it is quite strong and unrealistic assumption. Various regimes of monetary policy are discusses in the context of price expectations.
| Identifer | oai:union.ndltd.org:nusl.cz/oai:invenio.nusl.cz:205312 |
| Date | January 2016 |
| Creators | Frömmel, Tomáš |
| Contributors | Ševčík, Miroslav, Potužák, Pavel |
| Publisher | Vysoká škola ekonomická v Praze |
| Source Sets | Czech ETDs |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/masterThesis |
| Rights | info:eu-repo/semantics/restrictedAccess |
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