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Austrian business cycle theory and its application to the Great Depression
Svatek, Jakub ; Dočkal, Dalibor (advisor) ; Loužek, Marek (referee)
This thesis deals with the Austrian business cycle theory. At the beginning it introduce methodology of the Austrian School. It also describes the Austrian structures of the capital and production based on time preference, which are necessary to understand this whole theory. One of goals is to show the possible causes of the business cycle, which the Austrian economists see in the monetary expansion. This causes a reduction in interest rates, disorientation of investors and the spread of investment demand. Furthermore, the task is to verify the viability of this theory in practice, applications to the Great Depression in the U.S.. Here this thesis analyzes the anti-crisis measures of the government of presidents Hoover and Roosevelt. Results are compared with the assumptions of Austrian theory and based on this comparison it draws conclusions.
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Implications, causes and possible reform of the current financial crisis by the Postkeynesian and Austrian view
Vondruška, Tomáš ; Tajovský, Ladislav (advisor) ; Chytil, Zdeněk (referee)
This diploma thesis is trying to describe implications of current financial crisis by the Postkeynesian and Austrian view. The introduction section focuses on course of events in the United States of America after the September 11 attacks on World Trade Center till outbreak of mortgage crisis in 2007. After 9/11 the Federal Reserve System started to unprecedentedly increase the money supply. Large amount of these new resources flowed to the real estate market. Incurred conditions and implications to other financial sectors till the bankruptcy of Lehman Brothers in September 2008 are thoroughly studied. The causes of the crisis are being looked through the Postkeynesian and Austrian perspective in this thesis, because the major representatives of these two economic branches were able to predict the crisis coming. By using the works of the Postkeynesian and Austrian economists, possible solutions how to avoid this negative economic event in the future are being mentioned in the final part of this diploma thesis. Their suggestions and proposals contrast each other. Nevertheless I reach certain recommendation here, which shows government's interventions are inappropriate and functionless. These interventions have also harmful influence on the free-market economy function. Moreover they tend to deepen recessions. These arguments are being demonstrated on real cases.
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The Theory of Competition: Austrian and Neoclassical approach
Chmelík, Pavel ; Holman, Robert (advisor) ; Šťastný, Daniel (referee)
The paper compares Austrian and Neoclassical approach to the theory of competition. It finds an answer to the question, which of the two compared theories is more realistic. The comparison is based mainly on the approach to the role of competition in the formation of diverse market structures, on the view of the role of entrepreneur on the market and the role of market in the dispersion of information in the economy. The positions of the two schools to the above mentioned problems are very different and form the core of controversy between the two theories.
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Great Depression and its causes from the perspective of economic theories
Pýcha, Ondřej ; Sirůček, Pavel (advisor) ; Nečadová, Marta (referee)
The Great Depression was the greatest economic downturn in 20th century. In my work I describe a period before the crisis, and the collapse of the American Stock Exchange, which is often wrongly considered as the beginning of crisis. Main economical theories saw different reasons of crisis. Keynesians saw the biggest problem in the lack of aggregate demand and the solutions they saw in government stimulation of demand. Austrian school with this theory completely disagreed and saw just the biggest mistake of the government interventions that deepened the crisis. Monetarists saw the biggest problem in the failure of the Federal Reserve, which failed at the time of distress, when it should get adequate amount of money to banks. Saw a possible solution in reducing the interest rate and Federal reserve should purchase government bonds held by commercial banks. The United States got out of the crisis thanks to government spending during the World War II.
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State interventions into the automotive industry in USA
Knollová, Veronika ; Antoš, Ondřej (advisor) ; Zemplinerová, Alena (referee)
This bachelor thesis analyses the impact of interventions of U.S. government in automotive industry. First part is concerned with present economic knowledge about state interventions and their influence on economy. In connection to this topic, there are used books by well known authors from Austrian school as M. Rothbard and L. von Mises. One small chapter is focused on the financial crisis and its reason. Second part introduces automotive industry in USA with its biggest producers (General Motors, Ford Motors and Chrysler). Sub-chapter mentions restructuring General Motors. The practical part describes an influence of extraordinary state interventions on automotive industry in USA. Used data will be processed in the context with theories by Rothbard and Mises.
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Murry Rothbard a jeho přispění k objasnění Velké hospodářské krize
Sejček, Zdeněk ; Potužák, Pavel (advisor) ; Štěpánek, Pavel (referee)
There were many attempts to explain what exactly happened to USA?s economy between years 1921 and 1929. First and for many years the only one ?mainstream? explanation was that the main cause of Great Depression was underconsumption and overinvestment brought about by irresponsible customers and much more irresponsible investors. But there were also other explanations, based on totally contradictory conclusions and main cause of business cycles was found in state?s driven monetary expansion. Murray Rothbard?s explanation, based on Austrian Business Cycle Theory and developed in his book America?s Great Depression (written in 1963), is just one of them. In this book (despite of it has more than 300 pages) he advocates only one receipt how to avoid depressions: to stop FED?s power to inflate. Only this governmental agency, delegated by government to care about money and to expand money stock when necessary, can cause such big depression as Great Depression had been. Natural business cycle, less serious without compare, is organic part of every market and there is no reason to fight against it. But in the background with ever-present governmental attempt to do things better than something uncontrolled like market, business cycle changes itself to destructive long-term process that might take multiple more time to recover back to prosperous and healthy economic system. As Rothbard pointed out, all depressions without governmental interference were short-lived and self-adjustment process completed itself as rapidly as possible. The main ambition of my work would be to summarize Murray Rothbard?s work regarding Business Cycle and especially Great Depression and put it in context of Austrian Business Cycle Theory.
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Liberalism in International Affairs and Economy
Začal, Marek ; Lehmannová, Zuzana (advisor) ; Rolenc, Jan Martin (referee)
The aim of the thesis is to compare liberal approach in science disciplines of international affairs and economy. The thesis is divided into four chapters. In the first chapter is characterized historical background and sources of liberal thinking. Next two chapters focus on liberalism presented by international affairs science and by austrian school of economics. The fourth chapter contains the comparison of these two approaches. The aim is to find logical relationship, common characteristics and differences. Conclusion summarizes gathered knowledge and evaluate final results in comparison with selected aims.
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Austrians and the Mainstream: The Stories of Exchange Rate Determination
Biľo, Šimon ; Ševčík, Miroslav (advisor) ; Lipka, David (referee)
The scope of the present thesis is four-fold. First, to clarify and explain the means-ends framework and step-by-step analysis of the Austrian school. Second, to apply this framework to the Austrian theory of exchange rates. Third, to link the framework with most of the existing Austrian research related with the exchange rate theory and discuss this research. And fourth, to confront the Austrian economics with two mainstream approaches - Dornbusch?s overshooting model and short-run portfolio balance model. Message springing from this confrontation is twofold. First, the fundamental differences between present-day mainstream methods are envisaged. And second, the fact of possibility of mutual enrichment of both approaches from each other despite of completely different methodological backgrounds is suggested.
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Murry Rothbard a jeho přispění k objasnění Velké hospodářské krize
Sejček, Zdeněk ; Potužák, Pavel (advisor) ; Štěpánek, Pavel (referee)
There were many attempts to explain what exactly happened to USA?s economy between years 1921 and 1929. First and for many years the only one ?mainstream? explanation was that the main cause of Great Depression was underconsumption and overinvestment brought about by irresponsible customers and much more irresponsible investors. But there were also other explanations, based on totally contradictory conclusions and main cause of business cycles was found in state?s driven monetary expansion. Murray Rothbard?s explanation, based on Austrian Business Cycle Theory and developed in his book America?s Great Depression (written in 1963), is just one of them. In this book (despite of it has more than 300 pages) he advocates only one receipt how to avoid depressions: to stop FED?s power to inflate. Only this governmental agency, delegated by government to care about money and to expand money stock when necessary, can cause such big depression as Great Depression had been. Natural business cycle, less serious without compare, is organic part of every market and there is no reason to fight against it. But in the background with ever-present governmental attempt to do things better than something uncontrolled like market, business cycle changes itself to destructive long-term process that might take multiple more time to recover back to prosperous and healthy economic system. As Rothbard pointed out, all depressions without governmental interference were short-lived and self-adjustment process completed itself as rapidly as possible. The main ambition of my work would be to summarize Murray Rothbard?s work regarding Business Cycle and especially Great Depression and put it in context of Austrian Business Cycle Theory.
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