One should not that this theory is not incompatible with modern monetarism. Hayek had a concept called secondary deflation they fit the pattern of 2008. The p

One should not that this theory is not incompatible with modern monetarism. Hayek had a concept called secondary deflation they fit the pattern of 2008. The problem with ABCT is that Hayek and Mises both made the mistake that they assumed to much correlation between the boom and the bust. While Hayek had the 'secondary deflation' concept, he failed to realize that this was the far more destructive part (if mishandled by the central bank). So Hayek did not spend enough time on that and it caused him to misunderstand the Great Depression even when his theory was actually capable of explaining it.