When government accounted for a small proportion of the
economy, the Austrian Business Cycle Theory (ABCT) was apropos
because private enterprises comprised the lion’s share of commercial
interactions. But, of late, in more and more countries, the share of the
economy accounted for by the state has increased, and that by business
firms, less and less. Thus, it is time, it is past time, to introduce a new
concept, Austrian Government Cycle Theory (AGCT). The present paper
is an attempt to move us in that direction.