Caplan ends his essay thusly: “If the ABC has anything to contribute, it must add something further – something both original and true – to this lesson. There is little reason to believe that it can.” The intent of this research was to respond to Caplan’s criticism of the ABCT, and to demonstrate that the ABCT is actually quite capable of accounting for the systemic cluster of errors, various price phenomena, and widespread malinvestment characteristic of the Austrian cycle theory. Whether this paper has added anything “original and true” to the current body of works regarding the ABCT will remain to be seen, and I hope that this present piece may spark further research into some of the strongest and most common criticisms of the Austrian theory.

Here is the link (.pdf) to the paper in its revised form. It will probably undergo further changes, so any comments and/or contributions are welcome via e-mail.