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Prosperity and Depression: A Theoretical Analysis of Cyclical Movements

1946

by Gottfried Haberler

Business CyclesGottfried HaberlerLeague of NationsGreat DepressionAcceleration PrincipleMultiplierRicardo EffectUnemploymentWage RigidityBusiness Cycle TheoryEffective DemandFriedrich A. HayekGold StandardInvestmentJohn Maynard KeynesLiquidityMonetary TheoryJan TinbergenMethodologyAlfred MarshallCentral BankingCredit ExpansionDiscount RateIrving FisherOpen Market OperationsVelocity of CirculationCapital StructureCapital TheoryFixed CapitalSupply and DemandAlvin HansenArthur Cecil PigouJoseph SchumpeterKnut WicksellAustrian SchoolForced SavingFritz MachlupLionel RobbinsLudwig von MisesNatural Rate of InterestRoundabout ProductionWilhelm RopkeBalance of PaymentsCapital MovementsExchange ControlArthur SpiethoffCapital GoodsGustav CasselKarl MarxEconomic CrisisInterest RatesCartelsDeflationHoardingEntrepreneurshipInnovationProfit and LossEconomic GoodsRagnar FrischDepreciationSpeculationExpectationsWagesMoney SupplyInflationPlanned EconomyProduction CostsDiminishing ReturnsMarginal CostBoom and BustPrice LevelEmil LedererCapital AccumulationNeutral MoneyGunnar MyrdalIncome DistributionMoney MarketUncertaintyElasticity of DemandPrice TheorySavingInternational TradeLabor MobilityClassical EconomicsJoan RobinsonJohn HicksInfrastructureNational IncomeFiscal PolicyUnderconsumptionAlfred AmonnJacob VinerOskar LangeWelfare EconomicsReal IncomeMonetary PolicyCapital FlightBankingBanknotesFactors of ProductionLabor MarketTrade UnionsDeficit SpendingProtectionismPerfect CompetitionOskar MorgensternDevaluationGold ReservesPurchasing PowerExchange RatesReparationsKeynesian EconomicsMathematical EconomicsPaul SamuelsonCapital IntensityNicholas KaldorWar EconomyFederal Reserve

Table of Contents · 113 segments

1
Title Pages and Publication Noteessay
2
Preface to the Original Editionessay
3
Preface to the 1939 Editionessay
4
Preface to the 1941 Editionessay
5
Contents and Analytical Table of Contentsessay
6
Introductiontheoretical
7
Chapter 1: Preliminary Remarkschapter
8
Chapter 2: The Purely Monetary Theorychapter
9
Chapter 3: The Over-Investment Theories, General Characteristicschapter
10
Classification of Over-investment Theoriestheoretical
11
The Monetary Over-investment Theorieschapter
12
International Complications in the Monetary Over-Investment Theorytheoretical
13
Concluding Remarks on the Monetary Over-Investment Theorytheoretical
14
Non-Monetary Over-Investment Theories: General Characteristics and the Upswingtheoretical
15
The Down-Turn or Crisis in Non-Monetary Over-Investment Theorytheoretical
16
The Downswing or Depression in Spiethoff’s Theorytheoretical
17
The Upturn or Revival in Non-Monetary Over-Investment Theorytheoretical
18
Rhythm, International Complications, and Introduction to the Acceleration Principletheoretical
19
Statement of the Acceleration Principletheoretical
20
Acceleration of Derived Demand from Durable Producers’ Goodstheoretical
21
Acceleration of Derived Demand for Durable Consumption Goodstheoretical
22
Acceleration of Derived Demand from Permanent Stocks of Goodstheoretical
23
Generalised Statement of the Acceleration Principletheoretical
24
Qualifications to the Acceleration Principletheoretical
25
Continuation: Adventurous Versus Routine Investment and Reciprocal Demand-Capital Interactiontheoretical
26
Initial Impulse and Factors Determining Accelerator Effectstheoretical
27
Financing New Investment and the Accelerator in Over-Investment Expansiontheoretical
28
Causes of Breakdown: Capital Shortage, Aftalion, and Röpketheoretical
29
Chapter 4 Introduction: Partial Causes of Crises and Depressionschapter
30
Changes in Cost, Labour Efficiency, and Mitchell’s Cost Theorytheoretical
31
Horizontal Maladjustments, Error Theories, and General Depressiontheoretical
32
Over-Indebtedness and Fisher’s Debt-Deflation Theorytheoretical
33
Debt-Deflation and Financial Organisation in Depressiontheoretical
34
Chapter 5 Introduction: Under-Consumption Theorieschapter
35
Different Types of Under-Consumption Theoriestheoretical
36
Consumers’ Demand versus Shortage of Capitaltheoretical
37
Lagging Wages and the Excesses of the Boomtheoretical
38
Chapter 6 Introduction: Psychological Theorieschapter
39
Psychological Factors in Business-Cycle Explanationtheoretical
40
Psychological Theories: Summary and Relation to Other Theoriestheoretical
41
Harvest Theories and the Relation between Agriculture and the Business Cyclechapter
42
Closed-Economy Real Elasticity Theories of Harvest Effectstheoretical
43
Agricultural Raw Materials, Real Wages, and Labour Migrationtheoretical
44
Non-Agricultural Consumers’ Goods and Farmers’ Purchasing Powertheoretical
45
Investment and Saving Effects of Crop Fluctuationstheoretical
46
International Aspects and Summary of Agriculture’s Influence on the Business Cycletheoretical
47
Influence of the Business Cycle on Agriculturetheoretical
48
Chapter 8 Introduction: Recent Discussions on Trade Cycle Theorychapter
49
Saving and Investment: Everyday Ambiguity, Neo-Wicksellian Usage, and Keynesian Equalitytheoretical
50
Deflation, Hoarding, and Keynes’s Treatise Terminologytheoretical
51
Robertson’s Period Analysis and the Distinction between Money Income and Output Valuetheoretical
52
Swedish Ex Ante and Ex Post Analysis of Saving, Investment, and Credittheoretical
53
Critique and Refinement of Ohlin’s Ex Ante Schedule Theorytheoretical
54
Hawtrey, Keynes, and the Motives behind Saving and Investmenttheoretical
55
§ 3. Hoarding, Liquidity Preference and the Rate of Interesttheoretical
56
§ 4. The Multiplier and the Marginal Propensity to Consumetheoretical
57
Government Consumption, Investment, and the Multipliertheoretical
58
Keynesian Under-Employment Equilibrium and Business-Cycle Categoriestheoretical
59
Voluntary and Involuntary Unemployment, Wage Rigidity, and Real Wagestheoretical
60
Money-Wage Reductions, Price Flexibility, Chronic Under-Consumption, and Secular Stagnationtheoretical
61
Macroscopic Analysis, Static Theory, and Dynamic Business-Cycle Methodologytheoretical
62
Expectations, Sequence Analysis, and Dynamic Business-Cycle Modelstheoretical
63
Part II and Chapter 9: Defining Crisis, Depression, Prosperity, and Measurement Criteriachapter
64
The Business Cycle in the General and Technical Senseschapter
65
Basic Facts About the Business Cycletheoretical
66
The Secular Trendtheoretical
67
Business Cycles and Long Wavestheoretical
68
Is a General Theory of the Cycle Possible?theoretical
69
Two Regular Features of the Cycletheoretical
70
Chapter 9: Production and Employment by Groups of Industriestheoretical
71
Chapter 10: The Process of Expansion and Contraction — Introductionchapter
72
Expansion Mechanisms with Unemployed Resources and Full Employmenttheoretical
73
The Monetary Analysis of the Expansion Processtheoretical
74
Why Producers’ Goods and Durable Goods Rise Faster than Perishable Consumers’ Goodstheoretical
75
Saving and the Expansion Processtheoretical
76
The Contraction Process: General Description of the Mechanismtheoretical
77
Monetary Analysis of the Contraction Processtheoretical
78
Cumulative fall in investmenttheoretical
79
Drying-up of investible funds and central-bank deflationtheoretical
80
Hoarding of gold and bank notes by private individualstheoretical
81
Contraction of commercial bank credittheoretical
82
Hoarding by industrial and commercial firmstheoretical
83
Liquidation of non-bank debts and forced asset salestheoretical
84
Sales of securities and assets to cover lossestheoretical
85
Speculative sales and scales of liquiditytheoretical
86
Why producers’ and durable goods fall faster than consumers’ and perishable goodstheoretical
87
Chapter II: The Turning-Points. Crisis and Revival — Introductionchapter
88
The Down-Turn: Method of Procedure and Proximate Causes of Contractiontheoretical
89
Why Expansion Reduces Resistance to Deflationary Shockstheoretical
90
Disturbances Created by the Process of Expansion Itselftheoretical
91
The Up-turn: Revival — Introductionchapter
92
The Proximate Causes of Revivalchapter
93
Why the Economic System Becomes More Responsive to Expansionary Stimulichapter
94
Expansionary Tendencies Likely to Arise During Contractionchapter
95
Chapter 12: International Aspects of Business Cycles — Introductionchapter
96
Influence of Transport Costs and Imperfect Mobility of Goodstheoretical
97
Localisation of Investment, Credit and Banking: Imperfect Mobility of Capitaltheoretical
98
National Currency Autonomy, Gold Standards and Exchange Standardstheoretical
99
Exchange-Rate Variation, Devaluation and Abnormal Capital Movementstheoretical
100
Free Exchanges, Capital Movements and the International Transmission of Cyclestheoretical
101
Part III and Chapter 13 § I: Further Observations on the Theory of the Multiplierchapter
102
Chapter 13 § 2: The Foreign Trade Multipliertheoretical
103
Chapter 13 § 3: The Multiplier and the Acceleration Principle in Dynamic Modelstheoretical
104
Chapter 13 § 4: The Problem of the Turning Pointstheoretical
105
Professor Hayek’s Ricardo Effecttheoretical
106
Price Inflexibility, Wage Rigidity and Unemploymenttheoretical
107
On Certain Limitations to a Spending Policytheoretical
108
Appendix I: Description of Indices Illustrating Cyclical Movement in Various Countrieschapter
109
Appendix II: Curves on Production and Employment by Industry Groupschapter
110
Appendix II: Statistical Sources for Germany, Sweden, and Australiabibliography
111
Name Index to Parts I and IIbibliography
112
Subject Index to Parts I and IIbibliography
113
Name and Subject Index to Part IIIbibliography