Do you know the debate between John Maynard Keynes and Friedrich von Hayek? They had opposite explanations of the boom and bust cycle. Keynes argued that booms and busts are caused by the “irrational exuberance” of investors. Hayek argued that artificially-low interest rates fool entrepreneurs into malinvesting. We’ve tried Keynes’ ideas for the last 100 years; let’s give Hayek’s a try.