ABCT is frequently criticized because the theory cannot explain the length or size of the boom and bust. For example, some argue that it is not credible that swings in (short-run) market interest rates can result in extended downturns. This critique is misplaced. ABCT is not a theory that predicts how long the boom will last, or for how long the bust will last, or how big either of these are. These factors, while obviously important and deserving of study, are outside the scope of the theory. ABCT is exclusively a theory of the unsustainable boom—an explanation for why central bank-driven booms must necessarily turn to busts.
