User talk:ThoomBOY/Malinvestment

The concept dates back to at least 1867. In 1940, Ludwig von Mises wrote, "The popularity of inflation and credit expansion, the ultimate source of the repeated attempts to render people prosperous by credit expansion, and thus the cause of the cyclical fluctuations of business, manifests itself clearly in the customary terminology. The boom is called good business, prosperity, and upswing. Its unavoidable aftermath, the readjustment of conditions to the real data of the market, is called crisis, slump, bad business, depression. People rebel against the insight that the disturbing element is to be seen in the malinvestment and the overconsumption of the boom period and that such an artificially induced boom is doomed. They are looking for the philosophers' stone to make it last."

Many economists believe that malinvestments occur at different times or to certain companies. Åkerman and Dahmén who came up with the Åkerman-Dahmén theory believe that a malinvestment will occur during the "boom" to companies who cannot keep up with the interest rate growth[1].


 * Please note that I am new to Wikipedia, but I appreciate any help that I can get for formatting, content, etc.

ThoomBOY (talk) 20:23, 8 October 2021 (UTC)