Prosperity and Depression.pdf

XVIAnalYtical Table ofContentsA. THE MONETARY OVER-INVESTMENT THEORIES2. Genel'aJ Chal'acteristics and Theol'etical Foundation : Banking systemand money supply (33)-Natural rate and Inoney rate of interest (34)­Two meanings of the concept" natural rate" (35).3. The Upswing: Interest rates and prices (36)--Demand and supply ofloanable funds (37)-The capitalistic structure of production (39)-Savingand interest (40)-" Artificial lowering of the interest rate II (4 I )-Creditexpansion and" forced saving" (43). (4. The Down-Jut'n (Crisis) : Abandonment of over-capitalistic processes (45)-Shortage of investible funds (47)-Hayek's theory of capital shortagt(48)-Faulty bookkeeping practices (49)-The onset of the depression(50)-The fruits of the boom lost in the crisis (S2)-Neisser's criticism(53)-Why need the expansion end? (54)-Necessity of quantitativeassumptions (S5)-Incomplete assumptions (56).5· The Downswing: The depression ag a period of readj.ustment (57)­The secondary deflation (s8)-The struggle for liquidity (60).6. The Upturn (Revival) : The effective quantity of money (6I)-Recoveryin demand for credit (62)-Expansion from a position of partial employment(63)·7· Rhy'hm and Periodicity: The ideological basis of inflation {64)-Whatbanking policy 'will eliminate the cyde? (6S)-Cydical implications ofseasonal variations of credit (66)-Sum1llary (6]).8. International Complications: Guiding principles (68)-Influences throughthe balance of payments (68)-The gold standard (69)-Intemationalcapital movements (7o)-The composition of exports and imports (70).9· Concluding Remat'ks (71).B. TUB NON-MONETARY OVBJit-1NVESTKBNT TBBOlUB810. General Characteristics: Principal authors (72)-Stress on production ofcapital goods (73).§ II, The Upswing: Cumulative expansion process ~74).§ IZ. Th, Down-tut'n (Crisis) : Shortage of capital (7s)-Over-production ofdurable goods (76)-Shortage of labour and means of subsistence (17)­Consumers' goods and capital-goods industries (78)-The Cassel varlant(19).§ 13. The Down$wing (Depression) : Psychological elements (79).§ 14. The Up-tut'n (Revival) : Cost adjustments and new Investmentopportunities (80)-Schumpeter and the role of the business pioneer (81).IS. Rhythm and Periodicity: Business mechanIsm likened to steam-engine(83)-InevitabiHty of the cycle (83)-Re·investment cycles (84).16. Intwnat,onal Complications (85).C. OVER-INVESTMENT RESULTING FROM CHANGES IN THE DEMAND FOR FINISHED GOOD8­THE PRINCIPLE OF ACCELERATION AND MAGNIFICATION OF DElUVBD DEMAND§ 17. lntt'oduction: Influence of consumers' demand on investment (85).