Keynes and Hayek

Topics: Macroeconomics, John Maynard Keynes, Keynesian economics Pages: 1 (332 words) Published: February 24, 2013
Keynes and Hayek
John Maynard Keynes was an economist whose ideas have greatly affected the theory and practice of modern macroeconomics, and informed the economic policies of governments. He built on and greatly advanced earlier work on the causes of business cycles, and is widely considered to be one of the founders of modern macroeconomics and the most influential economist of the 20th century. His ideas are the basis for the school of thought known as Keynesian economics, as well as its various offshoots. Friedrich August Hayek was an economist and philosopher best known for his defense of classical liberalism. In 1974, Hayek shared the Nobel Memorial Prize in Economic Sciences for his "pioneering work in the theory of money and economic fluctuations and ... penetrating analysis of the interdependence of economic, social and institutional phenomena." Hayek is a major economist and political thinker of the twentieth century. Hayek's account of how changing prices communicate information which enables individuals to coordinate their plans is widely regarded as an important achievement in economics. He also contributed to the fields of systems thinking, jurisprudence, neuroscience and the history of ideas. The ideas of John Maynard Keynes and Friedrich von Hayek have dominated the economic landscape since the end of World War II. Both of these influential economists had distinct ideas about economic freedom--ideas that were very clearly in opposition to each other. Keynes and Hayek are two economists who disagree with many points having to do with the job growth recovering from the depression, more or less government spending, the evidence that government spending promotes prosperity in troubled times, war or natural disasters unexpectedly being good for an economy in a slump. These are a few arguments they made during the “fight,” but the side being focused on will be F.A Hayek. He believed that recession is bound to happen no matter what happens, messing...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Keynes VS Hayek Essay
  • Hayek vs. Keynes Essay
  • Keynes vs Hayek Essay
  • Essay about Keynes
  • Friedrich a Hayek Essay
  • Kayne vs Hayek Essay
  • Keynes Economic Analytical Essay
  • The Life of John Maynard Keynes Essay

Become a StudyMode Member

Sign Up - It's Free