Category Archives: Capital Theory
ARTICLE: Horwitz Explains Hayek vs Keynes on Production Goods & Investment
Steve Horwitz, “Contrasting Conceptions of Capital: Yet Another Look at the Hayek-Keynes Debate”. Abstract: Although much of the debate between Hayek and Keynes is today portrayed in terms of policy differences, those are not the most fundamental divisions between their … Continue reading
Vernon Smith on housing & the trade cycle
Housing production* is exactly the kind of thing Hayek identified as a time delayed production good which can absorb credit, capital, and leverage in a bandwagon of false expectations, only revealed as structural malinvestments at the end of the artificial … Continue reading
Posted in Boom & Bust, Capital Theory, housing bust
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Cohen on the Hayek / Knight Capital Controversy.
Hayek’s breakthrough year of 1936 was also the year of Frank Knight. Avi Cohen’s article on the Hayek-Knight dust up includes previously unpublished correspondence between Hayek and Knight during this period. Hayek’s take away lesson from his encounter with Knight … Continue reading
Posted in Capital Theory, Cohen, Knight
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A Challenge to Garrison’s Version of Hayekian Macro
Robert Vienneau, “Some Capital-Theoretic Fallacies in Garrison’s Exposition of Austrian Business Cycle Theory: A Research Note”. Abstract: “In response to the global economic crisis, some have advocated that economists consider the economics of the Austrian school. This paper examines elements … Continue reading
Posted in Capital Theory, Garrison
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