The Business Cycle

A Georgist-Austrian Synthesis


  • Fred E. Foldvary

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      Professor Fred E. Foldvary teaches economics at John F. Kennedy University in California. His interests include public finance, governance theory, and economic philosophy. His recent publications include Public Goods and Private Communities (Edward Elgar, 1994) and Beyond Neoclassical Economics (Edward Elgar, 1996).


Abstract. Conventional macroeconomics lacks a warranted explanation of the major business cycle, while the Austrian and geo-economic Georgist) schools have incomplete theories. A geo-Austrian synthesis, in contrast, provides a potent theory consistent with historical cycles and with explanations about the root causes. The geo-economic and Austrian schools have had little interaction in the past, despite many similarities (Yeager, 1954 and 1984). Though the theories of the schools are largely complementary, each providing content the other lacks, so far a synthesis has not been forthcoming; although some geo-economists have incorporated elements of Austrian capital theory (e.g., Gaffney, 1994).