Austrians might claim that a lower interest rate – or a lower price of credit – will induce greater investment when interest rates fall, but this does not necessarily follow in a world where business faces uncertainty, where expectations are subjective, and where demand for investment credit can collapse or be stagnant. - Lord Keynes
Lord Keynes talks about the Greg Hill/ Steve Horwitz debate and specifically about the coordination of saving and investment and the loanable funds theory. As some may note, I consider this debate important because I think it would benefit Austrian theory if it took out loanable funds theory out of its overall framework.
