Austrian Business Cycle Theory

An economic framework I use for investing

The Austrian School’s Business Cycle Theory (ABCT), primarily developed by Ludwig von Mises and Friedrich Hayek, explains economic booms and busts as driven by artificial distortions in the money supply, typically caused by central bank interventions. Below is a deep dive into its mechanics, empirical support, Hayek’s Nobel Prize, and Israel Kirzner’s contributions and rumored Nobel contention.