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Malinvestment

Malinvestment logo #10101) Austrian School 2) Business cycle theory
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Malinvestment

Malinvestment logo #21000 In Austrian business cycle theory, malinvestments are badly allocated business investments, due to artificially low cost of credit and an unsustainable increase in money supply. Central banks are often blamed for causing malinvestments. Austrian economists such as Nobel laureate F. A. Hayek advocate the idea that malinvestment occurs due to the co...
Found on http://en.wikipedia.org/wiki/Malinvestment
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