The Business Cycles Theory of Wilhelm Röpke

Abstract

Abstract: This paper presents Wilhelm Röpke’s business cycle theory, which has been not sufficiently investigated. The perspective of this theory lays in the intention of building a synthesis, called by the author a “monetary theory of overcapitalization”. The essence of the theory begins identifying the boom as the main cause of recessions and contains a special theory of depression. Besides, to draw a global picture of Röpke’s thought on business cycles, this paper integrates his vision, lately developed, upon the inflationary problem during economic expansions.