Broadly, a downturn in the economy where real (inflation adjusted) income shrinks. Depressions are commonly observed at the national level. Some major causes of depressions include misallocation of capital, increased uncertainty, and supply shocks.
Ben Powell - The Great Boom and Bust
Paul Cwik - Austrian Theory of the Business Cycle
MARCH 18, 2010
MAY 28, 2009
Paul L. Poirot examines the persistent complaint that the capitalist system of competitive private enterprise leads to periodic booms and busts.
NOVEMBER 03, 2008
One side blames the market. The other blames government. We get two causalstories going in opposite directions and a lot of animus. But both perhaps aremissing something important in this titanic debate about our current financialcrisis. It's time we exposed a complicated truth about the economy of the 21stcentury. More . . .
A NEW article byMax Borders
OCTOBER 21, 2008
Questions about the Great Depression may be usefully framed as pertaining to three distinct issues: the Great Contraction, the extraordinarily severe economic decline from 1929 to 1933; the Great Duration, the persistence of subpar economic performance for more than a decade; and the Great Escape, the ultimate recovery from this uniquely deep and long depression. Although economists continue to debate the causes of the Great Contraction and the Great Duration, a rough consensus has emerged that major policy blunders of various sorts deserve most of the blame for these calamities. With regard to the Great Escape, economists have also reached substantial agreement, but unfortunately they have come to agree on an interpretation that is almost completely wrong. More . . .
Related Freeman Articles
Sorting it out.
AUGUST 11, 2010 by WILLIAM L. ANDERSON
All too often people confuse cause and effect.
MULTIMEDIA - VIDEO
NOVEMBER 14, 2012 by BENJAMIN POWELL
On June 21, 2011 Ben Powell, Associate Professor of Economics at Suffolk University, lectured at the Freedom University: Current Events Seminar. In this video Ben discusses the Housing Boom and Bust.
Directed by Brian Aitken and produced by Steven Patterson for FEE.tv: Freedom in HD.