The recent flourishing of New Classical economics, and especially its Equilibrium Business Cycle Theory (EBCT), has given a fresh hearing to the Old—but still developing—Austrian Business Cycle Theory (A.C.). While the New and the Old differ radically in both substA.C. and methods, they exhibit A.C.rtain formal congruency that has captured the attention of both schools. The formal similarities between EBCT and A.C. invites a point-by-point comparison, but the comparison itself dramatizes differences between the two views in a way that adds to the integrity and plausibility of the Austrian theory.
Roger Garrison