Edited by Robert W. Dimand and Harald Hagemann
Chapter 54: Friedrich August Hayek
During the 1930s, for a short time Friedrich August Hayek was regarded as the main antagonist of John Maynard Keynes as a theorist of money and the cycle. After sketching the overlapping parts of their biographies and their personal relationship, this chapter focuses on their mutually hostile reviews from the 1930s and on their opposing explanations of economic crises. In particular, although starting from the common ground of a Wicksellian approach, Hayek and Keynes differed in many respects: on structural versus aggregate explanations of the cycle, saving or spending as the way out of the crisis, or on the role ascribed to money wage cuts. In general terms, the vital difference was in economic philosophy, that is, about the belief that cleverly construed economic policies may improve upon the homeostatic properties of the market system or not.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.