This article develops the relationships among real business cycle (RBC) theory, Austrian business cycle (ABC) theory, and Minsky's financial instability hypothesis (FIH). In RBC models, recessions are caused on the supply side by random technology shocks which are independent of monetary policy....

Rescaled range and power spectral density analysis are applied to examine a diverse set of macromonetary data for fractal character and stochastic dependence. Fractal statistics are used to evaluate two competing models of the business cycle, Austrian business cycle theory and real business...