by Mario Rizzo
If you were going to try to adduce evidence with regard to the Mises-Hayek-Garrison “Austrian Business Cycle Theory” what would you expect to see in the expansion, upper turning point and perhaps in the recession itself? Specifically, what would you expect to see in this most recent episode, the so-called Great Recession?
Unfortunately, it would not be helpful to refer to empirical phenomena about which no data is collected. This is a problem with most attempts to measure the elongation of the production structure, for example. But be creative. George Stigler used to say that it is no excuse to say, “The data doesn’t exist.” There may be indirect ways to measure.