Economist Art Carden explains why he’s reading Hayek, not Marx, in this time of economic crisis:
Marx’s status as an important figure in the history of ideas is unassailable, but the decisive and multi-faceted refutations of his system suggests that we won’t learn much by perusing his work for insight into the roots of the . . . → Read More: bust: Hayek, Not Marx
In my first two Hayek Seminar postings I highlighted the fact that for Hayek the empirical character of economics science begins with empirical problems in our experience. We witness a constantly repeated pattern in which prices “tend” toward costs. Alternatively, we attempt to impose a system of “just prices” and our attempts to empirical control . . . → Read More: seminar: Ransom on Hayek 3
Do you like section 2 of the “Friedrich Hayek” entry at Wikipedia? Is it good enough or do you have an idea to make it better? (Part of a continuing series):
Hayek was born in Vienna, then capital of the Austro-Hungarian Empire, the son of a doctor in the municipal health service. Hayek’s grandfathers were . . . → Read More: wiki: “Hayek” Entry at Wikipedia, section 2
What I’m probing right now is Hayek on the spurs to inquiry in economics. One insight I’d like to suggest is the fact that over time the human race loses track of the problems which originally provoked inquiry — and the loss of this original sprur to inquiry can have detrimental and even pathological effects . . . → Read More: seminar: Ransom on Hayek 2
I’m going to start using this space to teach some Hayek — and perhaps generate a conversation. Please feel welcome to add your own thoughts in the comments section below.
Today’s seminar topic is the empirical nature of economics science.
Hayek in many places talks about how science begins with problems in our experience. Hayek . . . → Read More: seminar: Ransom on Hayek 1
From Harvard Law professor Adrian Vermeule’s paper “Many-Minds Arguments in Legal Theory”:
B. Evolution and Hayek
In legal theory, evolutionary many-minds arguments are likely to focus either on Hayek or Burke, whose ideas on this subject overlap to some degree. I will focus on Hayek here, bringing Burke into the picture in the next section. . . . → Read More: law: Hayek & the “Many-Minds” Argument in Legal Theory
In his recent Hayek vs Keynes article, when Mario Rizzo says, “Hayek probably should have emphasized more that his theory implied the need to avoid a “secondary deflation” during the bust period. Increases in the demand to hold money should be offset by the banking system” lots of folks might ask, what is Rizzo talking . . . → Read More: macro: Why Does Hayek Advocate Explanding Money to Avoid a “Secondary Depression”
New York University’s Mario Rizzo:
Robert Skidelsky wrote in the Financial Times that recent debates among economists are a rerun of the disagreements between John Maynard Keynes and the U.K. Treasury in the early 1930s. To a certain extent this is true. But it might be more instructive to pay some attention to another debate . . . → Read More: macro: Hayek vs Keynes Still Matters
Have at it boys and girls:
When you teach a graduate course in price theory, you typically are teaching solutions to a “constrained optimization” problem. Thus the calculus along with Lagrangean multipliers and all that. Those who think there’s too much math in economics don’t deny that this is the problem; they only think that . . . → Read More: econ: What’s Wrong With This Picture?
From F. A. Hayek’s “Introduction” to Ludwig von Mises’ Memoirs (pdf):
He became estranged from his cohorts and fellow students when he turned away from the advancing ideas of social policy. Twenty-five years later I could still feel the emotion and anger his seemingly sudden break had caused — when he had turned away from . . . → Read More: biography: Hayek’s Introduction to Mises’ Memoirs
From Reason magazine:
Although private financial institutions played a key role in the booms and busts of both Japan and the U.S., monetary policy was a critical root cause. In both cases, the central bank helped set off a boom in asset prices by expanding credit and driving interest rates to artificially low levels. This . . . → Read More: bust: How America Has Replayed Every Mistake in the Japanese Playbook