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Why the Keynes-Hayek Macro Debate Cannot be won by either Side
Titolo Rivista: HISTORY OF ECONOMIC THOUGHT AND POLICY 
Autori/Curatori: Alexandru Patruti 
Anno di pubblicazione:  2018 Fascicolo: Lingua: Inglese 
Numero pagine:  13 P. 113-125 Dimensione file:  181 KB
DOI:  10.3280/SPE2018-002006
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più:  clicca qui   qui 


The controversy between Keynes and Hayek is one of the most renown in economics. Although it is now almost a century old, it does gather momentum from time to time, especially during periods of crisis when decision-makers are looking for policy solutions. However, in academic writings the actual debate did not and cannot find a common ground. I aim to show in the present article that at the center of the controversy is not a logical fallacy in the theoretical apparatus of either of the two economists, but the empirical premises which they took for granted. While Hayek believed that the market will tend towards equilibrium, and that real life conditions actually approximate this, Keynes considered that the market can be stuck in a partial equilibrium compatible with unemployment. I will further argue that subsequent developments attempt to move the debate in a whole new direction rather than solve this central issue.


Keywords: Equilibrium, market tendencies, J. M. Keynes, F. A. Hayek, market interest rate, unemployment
Jel Code: B13, B22, E20, E43, D50

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Alexandru Patruti, in "HISTORY OF ECONOMIC THOUGHT AND POLICY" 2/2018, pp. 113-125, DOI:10.3280/SPE2018-002006

   

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