Sticky aggregate consumption is a demonstrable phenomenon in economies throughout the world, but to our knowledge it has not yet been incorporated into capital structure macroeconomics. Doing so suggests an explanation for business cycles. On the heels of a technological advance, sticky...

F.A. Hayek's trade cycle theory was triumphant in the early 1930s, but withered within a decade as critics went unanswered. Hayek challenged others to “prove” theoretically, what he “knew” intuitively about business cycles. In the late 1990s, Roger Garrison responded with a logically...