Affiliation:
1. Ball State University
2. Ferris State University
Abstract
This paper argues that a boom-and-bust trade cycle was set into motion by the credit expansion of the First Bank of the United States, culminating in the Recession of 1797. This episode constitutes the first of many economy-wide business cycles in the history of the United States that are explained by Austrian business cycle theory.
Subject
General Economics, Econometrics and Finance
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