business cycle,interest rates, and private-property rights

In this essay , there is  two topics that are about : The first  one is what are the basics of Austrian theory of the business cycle. What are the difference, in terms if consequences, between lower interest rates that result from saving choice of individuals  and lower interest rates that are achieved artificallly, by the government-established  central bank? While the second one is, how can private-property rights solve envirnmental problems? These are  very excellent topics and questions.  The first question has two parts. the first part of the question is:  what are the basics of Austrian theory of business cycle? the answer to that is, in  the Austrian school of economy. Where they learn about two concepts which are, the structure of production: the highest to lowest levels of a product/product. such as, planting fruits which take  some years to grow , which is a highest level of production and the lowest level of production would be  to eat the fruits for a snack. The next thing they learn about is interest rates. They learn how  the interest rates going up and down and how the inerest rates go down when the the individuals start saving and how when the government-established central bank forces they down.  They learn how the interest rates go up due to the individuals buying more food,clothes and shoes,  and tv,etc. The second part of the first question is :What  is the difference between lower interest rates  th result from saving choice of individuals and lower interest rates that are achieved arifically, by the government -established central bank?  they are diffrent because  individuals willing save and buy less so inerest rates  drop naturally. While, when the government- establisheded central bank forces the interest rates down it causes  confusion between business firms  and people. Because , consumers(individuals) still buy as before and business firms  are trying  to do their projectts but find out the trucks  and serivces are not available, so  business firms drop from the top to the bottom at the same time.However, when interest rates drop naturally, business firms are able to use the trucks and services  that become available.In addition, there is no confusion. That is the difference between the two. The second  question is : how  can private-property rights solve envornmental problems? By  going to court and saying that the factory is polluting your property and your lungs and the factory would get punsh for doing that . Also,  factories and businesses would move to a place where  there was no one lived  and would use the most expensive coal so they  wouldn’t get sued and punished. So in other words, they would try their best not to get in trouble.


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