Information, Shadow Banking and Fluctuations

Vladimir Khrapko

doi:10.62374/db2f0566

Authors

Vladimir Khrapko Taurida State University

DOI:

https://doi.org/10.62374/db2f0566

Keywords:

Austrian school, Cycles, Shadow Banking, Information

Abstract

This paper attempts to emphasize the role of information, and new financial schemes and instruments in the creation of monetary trade cycles in the framework of Austrian economics. Using an approach initiated by F. A. Hayek, the classical mechanism of credit creation is exposed. The shadow banking role and its informational features that played significant role in the recent creation of the Great Recession are explained within the Austrian approach.

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