The Austrian Theory of the Business Cycle

Paul Cwik unpacks Austrian Business Cycle Theory, explaining how artificial credit expansion triggers unsustainable booms and inevitable busts. He walks through models of savings, investment, and the structure of production to reveal how interest rate manipulation distorts the economy, and why liquidation and recovery are both necessary and painful. Recorded at the Mises Institute in Auburn, Alabama, on July 22, 2025. Mises University is the world's leading instructional program in the Austrian School of economics, and is the essential training ground for economists who are looking beyond the mainstream.