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dc.date2014
dc.date.available2015-11-06T21:15:37Z
dc.date.issued2014
dc.identifier.issn1098-3708
dc.identifier.urihttp://hdl.handle.net/10784/7624
dc.description.abstractThis paper identifies merger waves as parts of Austrian-type business cycles. According to Austrian business cycle theory, when loan rates are reduced below their natural level through bank credit expansion, this falsifies the monetary calculation of capitalist-entrepreneurs, and investments are initiated that calculation showed were not profitable before the interest rate reduction. Since there are not enough resources in the economy to complete the new projects, businesses must increasingly withdraw the resources from other companies. Thus, this paper concludes that the increase in investment activity and the resulting “resource crunch” cause a merger wave that helps prolong the boom phase of the cycle. The merger wave ends when the credit expansion is not sufficient to sustain the economic boom, and the bust phase begins. Conversely, this paper concludes that if the fiduciary media do not enter the economy through the loan market to finance business investment, there is no pronounced and sustained increase in merger activity.eng
dc.language.isoengeng
dc.publisherMises Instituteeng
dc.relation.ispartofThe Quarterly Journal of Austrian Economics. Vol. 17, (2), 2014, pp.179-196spa
dc.relation.isversionofhttps://mises.org/library/merger-waves-and-austrian-business-cycle-theory
dc.relation.urihttps://mises.org/library/merger-waves-and-austrian-business-cycle-theory
dc.rightsrestrictedAccesseng
dc.sourceThe Quarterly Journal of Austrian Economics. Vol. 17, (2), 2014, pp.179-196spa
dc.titleMerger Waves and the Austrian Business Cycle Theoryeng
dc.typearticleeng
dc.typeinfo:eu-repo/semantics/articleeng
dc.typeinfo:eu-repo/semantics/publishedVersioneng
dc.rights.accessrightsinfo:eu-repo/semantics/restrictedAccesseng
dc.type.localArtículospa
dc.subject.keywordAustrian business cycleeng
dc.subject.keywordmerger waveseng
dc.subject.keywordAustrianeng
dc.subject.keywordneoclassicaleng
dc.subject.keywordbehavioraleng
dc.rights.localAcceso restringidospa
dc.date.accessioned2015-11-06T21:15:37Z
dc.type.hasVersionpublishedVersioneng
dc.type.hasVersionObra publicadaspa
dc.contributor.departmentEconomía y Finanzasspa
dc.contributor.departmentFinanzasspa
dc.contributor.authorSaravia, Jimmyspa
dc.citation.journalTitleThe Quarterly Journal of Austrian Economicseng
dc.citation.volume17
dc.citation.issue2
dc.citation.spage179
dc.citation.epage196
dc.contributor.affiliationCenter for Research in Economics and Finance (CIEF), Universidad EAFIT, Medellín, Colombiaspa
dc.contributor.programGrupo de Investigación Finanzas y Bancaspa


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