Business Cycles, Part II

by F. A. Hayek, Hansjoerg Klausinger (Editor)

Overview

In the years following its publication, F. A. Hayek’s pioneering work on business cycles was regarded as an important challenge to what later became known as Keynesian macroeconomics. Today, as debates rage on over the monetary origins of the current economic and financial crisis, economists are once again paying heed to Hayek’s thoughts on the repercussions of excessive central bank interventions.

Business Cycles, Part I and Business Cycles, Part II bring together Hayek’s work on what causes periods of boom and bust in the economy. Moving away from the classical emphasis on equilibrium, Hayek demonstrates that business cycles are generated by the adaptation of the structure of production to changes in relative demand. Thus, when central banks artificially lower interest rates, the result is a misallocation of capital and the creation of asset bubbles and additional instability. Part I contains his two major monographs on the topic: Monetary Theory and the Trade Cycle and Prices and Production. Part II assembles twelve of his shorter papers on the topic, covering a period from the 1920s to 1981 and revealing the evolution of Hayek’s thought.

In addition to bringing together Hayek’s work on business cycles, these two volumes also include extensive introductions by Hansjoerg Klausinger, placing the writings in intellectual context, including their reception and the theoretical debates to which they contributed.

F. A. Hayek (1899–1992), recipient of the Medal of Freedom in 1991 and co-winner of the Nobel Memorial Prize in Economic Sciences in 1974, was a pioneer in monetary theory and one of the principal proponents of classical liberal thought in the twentieth century. He taught at the London School of Economics, the Universityof Chicago, and the Universityof Freiburg.

Hansjoerg Klausinger is Associate Professor in the Department of Economics at WU, Vienna Universityof Economics and Business.

Product Details

ISBN-13:	9780865979048
Publisher:	Liberty Fund, Incorporated
Publication date:	03/24/2017
Series:	The Collected Works of F. A. Hayek
Pages:	360
Product dimensions:	6.00(w) x 9.00(h) x 0.85(d)
Age Range:	17 - 18 Years

About the Author

F. A. Hayek (1899-1992), recipient of the Medal of Freedom in 1991 and co-winner of the Nobel Memorial Prize in Economic Sciences in 1974, was a pioneer in monetary theory and one of the principal proponents of classical liberal thought in the twentieth century. He taught at the University of London, the University of Chicago, and the University of Freiburg.

Table of Contents

Editorial Foreword ix

Introduction 1

1 Investigations into Monetary Theory 45

Appendix: The Exchange Value of Money; A Review 136

2 The Purchasing Power of the Consumer and the Depression 141

3 A Note on the Development of the Doctrine of 'Forced Saving' 156

4 The Present State and Immediate Prospects of the Study of Industrial Fluctuations 171

5 Restoring the Price-Level? 180

Appendix: Excerpt from a Letter, F. A. Hayek to Gottfried Haberler, December 20, 1931 185

6 Capital and Industrial Fluctuations: A Reply to a Criticism 186

7 Investment that Raises the Demand for Capital 206

8 Profits, Interest and Investment 212

9 The Ricardo Effect 256

10 Professor Hayek and the Concertina-Effect Nicholas Kaldor 285

A Comment 313

Postscript Nicholas Kaldor 316

Postscript 317

11 Three Elucidations of the Ricardo Effect 318

12 The Flow of Goods and Services 331

Index 347