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with numbers. This assiimption is a base for a discipline called praxeology. Ali of those reasons make markets and economies less tamed in Austrian theories.

Austrian approach particnlarly focuses on nncertainty that entreprenenrs and banks bas to face while making iiwestment decisions. According to Brett H. McDonnell, the author of the paper "Of Mises and Min(sky): Libertarian and Liberał Responses to Financial Crises. Past and Present”, tliis uncertainty makes a significant contribution towards instability within the financial system.

Representatives of the Austrian School of economies are also in favor of so called laissez-faire policies and lack of governmental influence in financial markets. In other words, Austrian economists claim that the fewer and weaker the State interventionism, the better for the country. They greatly distrust the government and believe that its interference should be very limited. As a justification of the distrust of government intervention, the Austrians emphasize the problems of ignorance.

Followers of the Austrian School put tlie blame and responsibility for financial crises on the ineffident and mistaken actions of government and luiprofltable monetary policy of central bank. The Austrian School represents following theory of business cyde created by Ludvig von Mises and developed by Friedrich von Hayek. According to tliis theory, expensive monetary policy of central bank creates the boom pliase. Excessive credit expansion induces a so called "cheap money” phenomenon that may distort market information. As a result, entrepreneurs make wrong and unjustifiable investment decisions. Any of their plans cannot be fulfllled because of too smali number of factors of production, for example Capital, and Capital goods in the market The demand for Capital goods grows and conseąuently their prices accelerate as well what has a huge impact on the inerease of consumer prices. In addition, inereasing supply of money generate the decline of interest ratę and growtli of iiwestments at the same time. Nevertheless, some of those iiwestments will tum out to be mai iiwestments what is a cause for a bust phase. Only further credit expansion can be a proper solution for tliis land of situation. The crisis usually starts when the bank cliange its policy.

Furthermore, some Austrian tliinkers suppose that markets are independent and should be considered as a self-regulating mechanism. They believe tłiat even without inappropriate monetary policy markets themselves generate booms that eventually and unavoidably lead to busts. Tliis school represents an opinion that any actions of govemment during the crises does not make any sense and would not help. It is also a thought that any attempt to solve economic problems can make matters even worse and prolong the depression.