Depression
From Mises Wiki, the global repository of classical-liberal thought
In the trade cycle, depression is the period of economic readjustment which inevitably follows a boom created by inflation or credit expansion. The characteristics of a depression period are greatly reduced business activity, mass unemployment and much human misery. These characteristics continue until the illusions of the boom have been dispelled and economic activity has readjusted to the realities of the existing conditions. Attempts to interfere with free and flexible prices, wage and interest rates prevent recovery and prolong the depression period.[1]
See also: Austrian business cycle theory
References
- ↑ Percy L. Greaves, Jr. "Mises Made Easier ", 1974. Referenced 2014-07-01.
