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Who was Friedrich Hayek? And why does he hate Keynesianism?

F. A. Hayek is undoubtedly the most eminent of the modern Austrian economists.

Student of Friedrich von Wieser, protégé and colleague of Ludwig von Mises, and foremost representative of an outstanding generation of Austrian school theorists, Hayek was more successful than anyone else in spreading Austrian ideas throughout the English-speaking world.

"When the definitive history of economic analysis during the 1930s comes to be written," said John Hicks in 1967, "a leading character in the drama (it was quite a drama) will be Professor Hayek. . . . It is hardly remembered that there was a time when the new theories of Hayek were the principal rival of the new theories of Keynes" (Hicks, 1967, p. 203).

Unfortunately, Hayek's theory of the business cycle was eventually swept aside by the Keynesian revolution. Ultimately, however, this work was again recognized when Hayek received, along with the Swede Gunnar Myrdal, the 1974 Nobel Memorial Prize in Economic Science.

Hayek was a prolific writer over nearly seven decades; his Collected Works, currently being published by the University of Chicago Press and Routledge, are projected at nineteen volumes.

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Why Mises (and not Hayek)


“With laws shall our land be built up, but with lawlessness laid waste.”
-Njal Thorgeirsson

If you wish to do some

If you wish to do some further reading on Keynes vs Hayek, there is a book out, " Keynes vs Hayek, A clash that defined modern economics "

Michael Nystrom's picture


Ha! Thanks for the history lesson, Dex. ;-)

All art is only done by the individual. The individual is all you ever have, and all schools only serve to classify their members as failures. E.H.

Back to basics

Just hitting the reset button

For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.

Nope. The ends don't meet.

Minarchism allows people to be lightly interested in economics and law, while still being steeped in politically motivated reasoning. States(governments made of politicians) need big promises, need centrally planned socialized programs, need monopoly on/threat/exercise of violence AND debased currency.

"Keynesian revolution"

In my neck of the woods, we are promoting the Austrian r3VOLution.

Slow progress does not equate to no progress.

Josie The Outlaw http://www.josietheoutlaw.com/

"What if the American people learn the truth" - Ron Paul

Only problem

is that he made some serious concessions regarding the welfare state (healthcare, etc.) and now many leftists are picking up on that and using it to try to discredit the free market system. They say, "Look! I've found contradictions in this 'libertarian bible!' This discredits all of their ideas!"

The Road To Serfdom was my introduction to Austrian thinking and the idea of liberty itself, but I still can't understand why Hayek would reject charity and advocate a monopoly of force to assist the needy. We're paying for it now, though.

This is why sticking to principle is extremely important.

Simple Facts and Plain Arguments
A common sense take on politics and current events.