ABSTRACT
This chapter suggests that the notion of time-lags is indispensable to theories of the business cycle. It explains all the working parts of the business cycle, every operative element indispensable to it, must co-exist if the notion of cycle is to mean something. Important steps were taken towards a theory of the business cycle. The two kinds of encompassing theory of economic society could be called the Theories of Natural Success and the Theories of Capability of Error. Moreover, not all economists were content to leave the theory of money and the theory of value as mutually independent and unrelated matters. As long, Knut Wicksell points out, as the natural rate is higher than the money rate. The term natural rate suggests a technologically determined productivity measured, perhaps, as in the Austrian theory of capital which Wicksell had studied.
