Problem with Austrian Economics?
Perhaps this is due to my misunderstanding. If so, please correct me.
One gripe that I've had with Austrian theory is on bubble formation.
Bubbles cannot be create simply from central banks. Bubbles are present in all parts of life--areas where I do not think central banks can reach.
Two quick examples from my childhood: Beanie Babby stuffed animals and Pokemon Cards. These things basically came out of nowhere, and practically overnight, became a huge sensation with some of these cards and dolls going for hundreds and hundreds of dollars. Then, in a year or two, all of a sudden no one wanted them anymore, and their values plummeted.
Different stores: the most recent one I can think of is the cupcake bakery. A few years ago, these were sprouting up all over the place. Now, most of them have gone under. Or cigar bars and champagne bars. Hugely popular, for a time. Then people got sick of them and most of them went away.
Its even present TV: Survivor sparking a wave of reality TV/gameshow hybrid copy cats that became immensely popular before plummeting in ratings and being cancelled. There's another TV bubble in its final stages right now with American Idol and all its knock-offs: soon people will get sick of these types of shows, and the majority will end up cancelled.
My point is that bubble formation is really just an extension of the human trait of creating fads. I think overly lose central banks can help to keep bubbles humming along, but I do not think getting rid of central banks would mean the end of economic bubbles.