Economics · Macro
Business Cycles: Keynes vs Hayek
The great 1930s debate: Keynes's demand-driven slumps, multipliers and government spending vs Hayek's credit-fueled malinvestment and the knowledge problem, and how both shaped responses to 2008 and 2020.
Step 1 of 5 · Overview35 min read ·
Key idea
Prereqs: GDP & inflation; Money & banking. Next: Development economics; Monetary policy. Sources: Keynes, *The General Theory* (1936); Hayek, *Prices and Production* (1931) and 'The Use of Knowledge in Society' (1945); Nicholas Wapshott, *Keynes Hayek* (2011).Next: 1. Keynes