Fraud: Why the Great Recession
It is a documentary about the crisis, the great recession, interpreted from the perspective of the Austrian theory of economics. From a completely different perspective than usual, the documentary points to state intervention, manipulating the markets, and the fractional reserve system as the main causes of the crisis. Do you agree with this theory? Do you think it could have been avoided in any way? Leave us your opinion!
The Austrian theory of the business cycle was developed by economists of the Vienna school. It explains the relationship between bank credit, economic growth, and the massive investment errors that accumulate in the bull phase of the cycle. He argues that the artificial expansion of credit (without prior savings support), and by lowering interest rates, tends to create a false economic boom, manipulating prices distorted by the excessive amount of money in circulation.