The microfoundations of the microfoundations of Austrian Business Cycle Theory

The Austrian School interpretation of the Keynes-Hayek debate runs counter to the conventional wisdom that Hayek “lost” the debate. Austrians maintain that they have the substantive theoretical high ground and the Keynesian perspective to this day fails to comprehend it. But in all of the many variations and repetitions of the ABCT, though of episodic interest with every crisis, the ABCT has failed to decisively persuade the majority, including...