https://youtu.be/8welI8CK50M Here, in a very simple summary, is what the Austrian theory says: 1) Interest rates can come down in two ways: a) the public saves more; or b) the central bank artificially forces them down. 2) Businessmen respond to the lower interest rates by starting new projects. The projects tend to be those that are the most interest-rate sensitive-in particular, they occur in the so-called higher-order stages of production: mining, raw materials, construction, capital equipment, etc. Production processes farthest removed in time from finished consumer goods, in other...
