Imagine the economy as a roller coaster—a ride with thrilling booms that must be followed by the inevitable dread of busts, at least if the booms are artificially enhanced. Welcome to the Austrian business cycle theory (ABCT), a theory that translates these physical rules to economic ideas and explains the volatile ups and downs of an economy. This theory isn’t just an academic exercise, but it’s also a practical tool that helps us anticipate and prepare for economic fluctuations. By understanding the ABCT, we can better navigate the financial markets and recognize the signs of an upcoming downturn. It’s like having a map of the roller coaster, allowing us to brace ourselves before the steep drops.Mechanism behind the CurtainWhile the founding father of modern macroeconomics, John Maynard

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