--- title: "Meaning & Key Takeaway of: As 'Austrian' business cycle theory has…" description: "\"As 'Austrian' business cycle theory has pointed out, any bank credit inflation sets up conditions for boom-and-bust; there is no need for prices actual..." image: "https://sms4smile.com/quotes/i/73a/murray-rothbard-1563_bank_as-austrian-business-cycle-theory-has-po_2808605.jpg" --- # As 'Austrian' business cycle theory has pointed out, any… ![“As 'Austrian' business cycle theory has pointed out, any bank credit inflation sets up conditions for boom-and-bust; there is no need for prices actually to rise.” quote by Murray Rothbard](https://sms4smile.com/quotes/i/73a/murray-rothbard-1563_bank_as-austrian-business-cycle-theory-has-po_2808605.jpg) [Download](https://sms4smile.com/quotes/i/73a/murray-rothbard-1563_bank_as-austrian-business-cycle-theory-has-po_2808605.jpg) [Open image](https://sms4smile.com/quotes/i/73a/murray-rothbard-1563_bank_as-austrian-business-cycle-theory-has-po_2808605.jpg) > “As 'Austrian' business cycle theory has pointed out, any bank credit inflation sets up conditions for boom-and-bust; there is no need for prices actually to rise.” [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Credit expansion can trigger cycles without price changes, leading to boom and bust. **In simple terms:** Bank credit can cause cycles without price rise. Key Takeaway Watch credit growth, not just prices. Themes economics business cycles credit inflation boom-bust Mood analytical critical Type theoretical educational When to use this quote - banking sector - policy making - investment decisions - risk assessment Key Concepts Monetary theory Austrian economics financial instability Questions to Reflect On - How does credit affect real economy? - Can cycles occur without price changes? A Different Perspective Assumes all credit is inflationary, ignoring other factors. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Credit](https://sms4smile.com/quotes/about/credit/) [Inflation](https://sms4smile.com/quotes/about/inflation/) ## Related quotes > [The 'boom-bust' cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.](https://sms4smile.com/quotes/murray-rothbard/the-boom-bust-cycle-is-generated-by-monetary-intervention-in-the/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Inflation is lower and more stable and the real business cycle fluctuations are more modest.](https://sms4smile.com/quotes/martin-feldstein/inflation-is-lower-and-more-stable-and-the-real-business-cycle/) [Martin Feldstein](https://sms4smile.com/quotes/author/martin-feldstein/) > [ All we can thus far say about the duration of the units of \[the business cycle\] and each of \[its\] two phases is that… ](https://sms4smile.com/quotes/joseph-a-schumpeter/all-we-can-thus-far-say-about-the-duration-of-the-units-of-the/) [Joseph A. Schumpeter](https://sms4smile.com/quotes/author/joseph-a-schumpeter/) > [It is, after all, only common sense to realize that, but for the fact that economic life is a process of incessant internal change,…](https://sms4smile.com/quotes/joseph-a-schumpeter/it-is-after-all-only-common-sense-to-realize-that-but-for-the-fact/) [Joseph A. Schumpeter](https://sms4smile.com/quotes/author/joseph-a-schumpeter/) > [If we're going to forecast the business cycle, surely it is a good idea to know the business cycle. Sounds reasonable, but it's not…](https://sms4smile.com/quotes/edgar-fiedler/if-we-re-going-to-forecast-the-business-cycle-surely-it-is-a-good/) [Edgar Fiedler](https://sms4smile.com/quotes/author/edgar-fiedler/) > [People think of a business cycle, which is a boom followed by a recession and then automatic stabilizers revive the economy. But this time…](https://sms4smile.com/quotes/michael-hudson/people-think-of-a-business-cycle-which-is-a-boom-followed-by-a/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [In the classic old business cycle, there would be a diminution in sales; it would take a little while for this information to reach…](https://sms4smile.com/quotes/alan-blinder/in-the-classic-old-business-cycle-there-would-be-a-diminution-in/) [Alan Blinder](https://sms4smile.com/quotes/author/alan-blinder/) > [The president has very little effect on the economy. If you want to put blame or credit, the main person who influences the business…](https://sms4smile.com/quotes/robert-fogel/the-president-has-very-little-effect-on-the-economy-if-you-want-to/) [Robert Fogel](https://sms4smile.com/quotes/author/robert-fogel/) > [No one has the right to not assume that the business cycle will turn! Every five years or so, you have got to assume…](https://sms4smile.com/quotes/jamie-dimon/no-one-has-the-right-to-not-assume-that-the-business-cycle-will-turn/) [Jamie Dimon](https://sms4smile.com/quotes/author/jamie-dimon/) > [There will always be a business cycle, and white-collar workers will get hit in the next recession like they always do in recessions.](https://sms4smile.com/quotes/robert-reich/there-will-always-be-a-business-cycle-and-white-collar-workers-will/) [Robert Reich](https://sms4smile.com/quotes/author/robert-reich/) > [There is no evidence that the business cycle has been repealed.](https://sms4smile.com/quotes/alan-greenspan/there-is-no-evidence-that-the-business-cycle-has-been-repealed/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [“Most economists would concede that, in theory, government has the tools to smooth the business cycle. The problem is that fiscal policy is not…](https://sms4smile.com/quotes/charles-wheelan/most-economists-would-concede-that-in-theory-government-has-the-tools/) [Charles Wheelan](https://sms4smile.com/quotes/author/charles-wheelan/) > [The term 'business cycle' is imprecise. Economic fluctuations affect everyone, not just businesses, and they are, unlike astral cycles, anything but regular.](https://sms4smile.com/quotes/kevin-hassett/the-term-business-cycle-is-imprecise-economic-fluctuations-affect/) [Kevin Hassett](https://sms4smile.com/quotes/author/kevin-hassett/) > [At some risk of oversimplification, I suggest that the usual reason a business cycle turns into a monster is an overdose of government policy.](https://sms4smile.com/quotes/edgar-fiedler/at-some-risk-of-oversimplification-i-suggest-that-the-usual-reason-a/) [Edgar Fiedler](https://sms4smile.com/quotes/author/edgar-fiedler/) > [The best way that a central bank can support growth on a durable basis is to ensure inflation is low, stable - there is…](https://sms4smile.com/quotes/urjit-patel/the-best-way-that-a-central-bank-can-support-growth-on-a-durable/) [Urjit Patel](https://sms4smile.com/quotes/author/urjit-patel/) ## More by Murray Rothbard > [I think one of the most important directions to be pursued in the 'sciences of human action' is to develop a natural-law ethics based…](https://sms4smile.com/quotes/murray-rothbard/i-think-one-of-the-most-important-directions-to-be-pursued-in-the/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Since the State necessarily lives by the compulsory confiscation of private capital, and since its expansion necessarily involves ever-greater incursions on private individuals and…](https://sms4smile.com/quotes/murray-rothbard/since-the-state-necessarily-lives-by-the-compulsory-confiscation-of/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Falling prices through increased production is a wonderful long-run tendency of untrammeled capitalism.](https://sms4smile.com/quotes/murray-rothbard/falling-prices-through-increased-production-is-a-wonderful-long-run/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [To deprecate human reason by saying that none of us is or can be omniscient is absurd, for it takes an impossible standard as…](https://sms4smile.com/quotes/murray-rothbard/to-deprecate-human-reason-by-saying-that-none-of-us-is-or-can-be/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Cops must be unleashed, and allowed to administer instant punishment, subject of course to liability when they are in error.](https://sms4smile.com/quotes/murray-rothbard/cops-must-be-unleashed-and-allowed-to-administer-instant-punishment/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Subjectivism is not an absolute principle; it is a necessary but not sufficient condition for sound methodology.](https://sms4smile.com/quotes/murray-rothbard/subjectivism-is-not-an-absolute-principle-it-is-a-necessary-but-not/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [We must therefore turn to history for enlightenment; here we find that none of the proclaimed anarchist groups correspond to the libertarian position, that…](https://sms4smile.com/quotes/murray-rothbard/we-must-therefore-turn-to-history-for-enlightenment-here-we-find-that/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [John Stuart was the quintessence of soft rather than hardcore, a woolly minded man of mush in striking contrast to his steel-edged father.](https://sms4smile.com/quotes/murray-rothbard/john-stuart-was-the-quintessence-of-soft-rather-than-hardcore-a/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [What do intellectuals and opinion makers get from big government? An increasing number of cushy jobs in the bureaucracy, or in the government-subsidized sector,…](https://sms4smile.com/quotes/murray-rothbard/what-do-intellectuals-and-opinion-makers-get-from-big-government-an/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [The major reason for Keynes's rejection of communism was simply that he could scarcely identify with the grubby proletariat.](https://sms4smile.com/quotes/murray-rothbard/the-major-reason-for-keynes-s-rejection-of-communism-was-simply-that/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Liberty and morality had to win their way slowly over many centuries, until finally expanding liberty made possible the great technological advance of the…](https://sms4smile.com/quotes/murray-rothbard/liberty-and-morality-had-to-win-their-way-slowly-over-many-centuries/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [The State has invariably shown a striking talent for the expansion of its powers beyond any limits that might be imposed upon it.](https://sms4smile.com/quotes/murray-rothbard/the-state-has-invariably-shown-a-striking-talent-for-the-expansion-of/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Absolute freedom need not be lost as the price we must pay for the advent of civilization; men are born free, and need never…](https://sms4smile.com/quotes/murray-rothbard/absolute-freedom-need-not-be-lost-as-the-price-we-must-pay-for-the/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [Absolute freedom need not be lost as the price we must pay for the advent of civilization. Man may achieve liberty and abundance, freedom…](https://sms4smile.com/quotes/murray-rothbard/absolute-freedom-need-not-be-lost-as-the-price-we-must-pay-for-the-2/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) > [The underconsumptionist of 1819 believed that consumption would be stimulated by tariffs, while the underconsumptionist of a later day urged monetary expansion as the…](https://sms4smile.com/quotes/murray-rothbard/the-underconsumptionist-of-1819-believed-that-consumption-would-be/) [Murray Rothbard](https://sms4smile.com/quotes/author/murray-rothbard/) [Explore all 227 Murray Rothbard quotes ](https://sms4smile.com/quotes/author/murray-rothbard/) ## More Bank quotes > [It isn't what a man's got in the bank, but what he's got in his head, that makes him a great merchant.](https://sms4smile.com/quotes/george-horace-lorimer/it-isn-t-what-a-man-s-got-in-the-bank-but-what-he-s-got-in-his-head/) [George Horace Lorimer](https://sms4smile.com/quotes/author/george-horace-lorimer/) > [My aim was to make money for the bank. You lose track of the amounts involved when you are engaged in this kind of…](https://sms4smile.com/quotes/jerome-kerviel/my-aim-was-to-make-money-for-the-bank-you-lose-track-of-the-amounts/) [Jerome Kerviel](https://sms4smile.com/quotes/author/jerome-kerviel/) > [I earnestly feel terrible for any mistakes at the bank.](https://sms4smile.com/quotes/steve-mnuchin/i-earnestly-feel-terrible-for-any-mistakes-at-the-bank/) [Steve Mnuchin](https://sms4smile.com/quotes/author/steve-mnuchin/) > [You can look at the West Bank. Cities are like prisons. They can be closed quickly by the Israeli forces, and everything stops in…](https://sms4smile.com/quotes/hassan-nasrallah/you-can-look-at-the-west-bank-cities-are-like-prisons-they-can-be/) [Hassan Nasrallah](https://sms4smile.com/quotes/author/hassan-nasrallah/) > [What we prefer to do is operate our investment bank in a way that is like what investment banks used to be, which is…](https://sms4smile.com/quotes/warren-stephens/what-we-prefer-to-do-is-operate-our-investment-bank-in-a-way-that-is/) [Warren Stephens](https://sms4smile.com/quotes/author/warren-stephens/) > [The situation in the West Bank and Gaza involves a military occupation amid urban guerrilla warfare, analogous to the British security measures in Northern…](https://sms4smile.com/quotes/jack-schwartz/the-situation-in-the-west-bank-and-gaza-involves-a-military/) [Jack Schwartz](https://sms4smile.com/quotes/author/jack-schwartz/) > [Remember, your bank will never call and ask you to hand over account numbers or say you must swap money from one account to…](https://sms4smile.com/quotes/angela-rippon/remember-your-bank-will-never-call-and-ask-you-to-hand-over-account/) [Angela Rippon](https://sms4smile.com/quotes/author/angela-rippon/) > [I couldn't be working in a bank and launch a clothing line. It's only because cinema gave me a lot of access that I…](https://sms4smile.com/quotes/vijay-deverakonda/i-couldn-t-be-working-in-a-bank-and-launch-a-clothing-line-it-s-only/) [Vijay Deverakonda](https://sms4smile.com/quotes/author/vijay-deverakonda/) > [If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about…](https://sms4smile.com/quotes/jeroen-dijsselbloem/if-there-is-a-risk-in-a-bank-our-first-question-should-be-okay-what/) [Jeroen Dijsselbloem](https://sms4smile.com/quotes/author/jeroen-dijsselbloem/) > [With post offices and postal workers already on the ground, USPS could partner with banks to make a critical difference for millions of Americans…](https://sms4smile.com/quotes/elizabeth-warren/with-post-offices-and-postal-workers-already-on-the-ground-usps-could/) [Elizabeth Warren](https://sms4smile.com/quotes/author/elizabeth-warren/) > [True wealth is not measured by how much money you've got in the bank or how many toys you've got. Some of the happiest…](https://sms4smile.com/quotes/rashad-evans/true-wealth-is-not-measured-by-how-much-money-you-ve-got-in-the-bank/) [Rashad Evans](https://sms4smile.com/quotes/author/rashad-evans/) > [I might have added zeros to my bank balance and followers to my Instagram account, but apart from that, I still lead a middle-class…](https://sms4smile.com/quotes/vikrant-massey/i-might-have-added-zeros-to-my-bank-balance-and-followers-to-my/) [Vikrant Massey](https://sms4smile.com/quotes/author/vikrant-massey/) > [Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.](https://sms4smile.com/quotes/urjit-patel/monetary-policy-transmission-encompasses-the-whole-continuum-of/) [Urjit Patel](https://sms4smile.com/quotes/author/urjit-patel/) > [I actually love Twitter and Instagram. I do think it's so strange to think that 20 years ago, people would never have known personal…](https://sms4smile.com/quotes/lorde/i-actually-love-twitter-and-instagram-i-do-think-it-s-so-strange-to/) [Lorde](https://sms4smile.com/quotes/author/lorde/) > [The Oslo Accords in 1993 determined that the Gaza Strip and the West Bank are a single territorial entity which cannot be divided. Immediately,…](https://sms4smile.com/quotes/noam-chomsky/the-oslo-accords-in-1993-determined-that-the-gaza-strip-and-the-west/) [Noam Chomsky](https://sms4smile.com/quotes/author/noam-chomsky/) Browse all 916 Bank quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "As 'Austrian' business cycle theory has pointed out, any bank credit inflation sets up conditions for boom-and-bust; there is no need for prices actually to rise.", "creator": { "@type": "Person", "name": "Murray Rothbard" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/murray-rothbard/as-austrian-business-cycle-theory-has-pointed-out-any-bank-credit/", "about": { "@type": "Thing", "name": "Bank" }, "@id": "https://sms4smile.com/quotes/murray-rothbard/as-austrian-business-cycle-theory-has-pointed-out-any-bank-credit/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/73a/murray-rothbard-1563_bank_as-austrian-business-cycle-theory-has-po_2808605.jpg", "contentUrl": "https://sms4smile.com/quotes/i/73a/murray-rothbard-1563_bank_as-austrian-business-cycle-theory-has-po_2808605.jpg", "url": "https://sms4smile.com/quotes/i/73a/murray-rothbard-1563_bank_as-austrian-business-cycle-theory-has-po_2808605.jpg", "width": 1080, "height": 1080, "caption": "“As 'Austrian' business cycle theory has pointed out, any bank credit inflation sets up conditions for…” — Murray Rothbard", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Murray Rothbard", "item": "https://sms4smile.com/quotes/author/murray-rothbard/" }, { "@type": "ListItem", "position": 4, "name": "As 'Austrian' business cycle theory has...", "item": "https://sms4smile.com/quotes/murray-rothbard/as-austrian-business-cycle-theory-has-pointed-out-any-bank-credit/" } ], "@id": "https://sms4smile.com/quotes/murray-rothbard/as-austrian-business-cycle-theory-has-pointed-out-any-bank-credit/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```