Tony - “One of the main arguments about Austrian Business Cycle Theory is concerning growth.”
Really? What argument?
Your post is similar to this one. You and I previously discussed capital formation and the structure of production. These concepts are still missing from your analysis.
Your post is a mixture of mostly Keynesian / interventionist economics dabbled with Austrian terminology. If what you say is accurate, maybe someone can enlighten me.
“I think that this would resolve some of the debates that we have over stimulus. Yes, to some extent they will work, but only to the point at which the induced demand from capital investments can outstrip the fall in demand from inflation.”
Disagree. Stimulus is simply “taxing”, “printing”, “government spending”, “government borrowing”. None of this can possibly “work”. Impossible. Then, at what point do “austerity programs” come into play?
I think the post from March 31st addresses some of the ideas you present here.