Keynes and Hayek: The Money Economy (Routledge Foundations of the Market Economy)

John Maynard Keynes and Friedrich Hayek had serious differences of opinion when it came to assessing the fractured inter-war world. G. R. Steele picks apart this debate and argues persuasively that Hayek's outlook will prove to be the more enduring. Keynes And Hayek Inspired The Economic Controversy Of The Twentieth Century: The Role Of The State, And Of Money And Interest Rates In An Advanced Capitalist Industrial Economy. In His Work, Keynes Points To High Interest Rates, Low Asset Values And A Negative Wealth Effect As The Principal Causes Of A Slump. By Contrast, Hayek Points To A System Extended Beyond Its Full Capacity By Low Interest Rates And High Investment Yields. Where Keynes Argued That Under-used Capacity Is Symptomatic Of Deficient Aggregate Demand, Hayek Viewed Under-used Capacity As Symptomatic Of Inappropriate Investments And Of A Demand For Consumption Goods That Is Too Pressing To Allow The Completion Of Investments In Current Gestation. This Book Relaunches Alex Leijonhufvud's Controversial Critique Of Keynes's General Theory, Examining It In Conjunction With Hayek's Work On Capital Theory And Business Cycles. The Monetary Issues Discussed In This Book Remain Both Complex And Contentious. In Contrasting The Broad Features Of Austrian Economics With Post-keynesian Economics, The Book Also Discusses Points Raised By More Recent Protagonists In The Debate. Against This Background, Arguments And Events Of The Twentieth Century Are Examined For Economic Policy Guidance.--jacket. 1. Introduction -- 2. Vision In Economics -- 3. Philosophy And Political Economy -- 4. Money Issues -- 5. Macrodisequilibrium -- 6. Keynes And Senie Macromodels -- 7. Value Theory And Monetary Theory -- 8. Capital, Money And Cycles -- 9. Austrians And Post-keynesians -- 10. Economic Guidance. G.r. Steele. Includes Bibliographical References And Index. Book Cover......Page 1 Title......Page 4 Contents......Page 5 List of figures and tables......Page 11 Preface......Page 12 Introduction......Page 14 Vision in economics......Page 32 Philosophy and political economy......Page 50 Money issues......Page 74 Macrodisequilibrium......Page 91 Keynes and SENIE macromodels......Page 114 Value theory and monetary theory......Page 130 Capital, money and cycles......Page 153 Austrians and post-Keynesians......Page 173 Economic guidance......Page 196 Notes......Page 218 Bibliography......Page 221 Index......Page 232 Economics Book Cover 1 Title 4 Contents 5 List of figures and tables 11 Preface 12 Introduction 14 Vision in economics 32 Philosophy and political economy 50 Money issues 74 Macrodisequilibrium 91 Keynes and SENIE macromodels 114 Value theory and monetary theory 130 Capital, money and cycles 153 Austrians and post-Keynesians 173 Economic guidance 196 Notes 218 Bibliography 221 Index 232 John Maynard Keynes and Friedrich Hayek differed profoundly in their responses to the interwar world that they inhabited.