The following points highlight the top eight theories of business cycle. The theories are: 1. Hawtrey’s Monetary Theory 2. Hayek’s Monetary Over-Investment Theory 3. Schumpeter’s Innovations Theory 4. Keynes’s Theory 5. Friedman’s Theory 6. Hicks’s Theory. 1. Hawtrey’s Monetary Theory: According to Prof. R.G. Hawtrey, “The trade cycle is a purely monetary phenomenon.” It is […]