Theory in a nutshell: Excessive growth in bank credit due to an artificially low rate of interest. The idea arose in the work of Ludwig von Mises and Friedrich Hayek. The 1974 Nobel Prize was shared by Hayek together with Myrdal, in part due to his work on this theory. Many mainstream economists reject the idea.
The general area of economics in which these discussions take place may loosely be termed the Theory of Money and economic fluctuations.
The general area of economics in which these discussions take place may loosely be termed the Theory of Money and economic fluctuations.
