Hayek’s early “Constant Total Money Stream” Target

Lawrence White:

“Hayek’s business cycle theory led him to the conclusion that intertemporal price equilibrium is best maintained in a monetary economy by constancy of “the total money stream,” or in Fisherian terms the money stock times its velocity of circulation, MV. Hayek was clear about his policy recommendations: the money stock M should vary . . . → Read More: Hayek’s early “Constant Total Money Stream” Target

Hayek on a Pre-Announced “Total Income Stream”

Hayek’s version of “NGDP targeting”, from 1975:

“The moment there is any sign that the total income stream may actually shrink, I should certainly not only try everything in my power to prevent it from dwindling, but I should announce beforehand that I would do so in the event the problem arose.”*

The view echoes . . . → Read More: Hayek on a Pre-Announced “Total Income Stream”

Hayek on How the Interventionist State Shapes the Structure of the Misallocation of Resources During the Artificial Boom

“The general fact that booms have always appeared with a great increase of investment, a large part of which proved to be erroneous .. fits in with the idea that a supply of capital was made apparent which wasn’t actually existing. The whole combination of a stimulus to invest on a large scale followed by . . . → Read More: Hayek on How the Interventionist State Shapes the Structure of the Misallocation of Resources During the Artificial Boom

Hayek on Social Security 4

“We must also expect that the availability of this assistance will induce some to neglect such provision against emergencies as they would have been able to make on their own.  It seems only logical, then, that those who will have a claim to assistance in circumstances for which they could have made provision should be . . . → Read More: Hayek on Social Security 4

Hayek on Social Security 3

“What we now know as public assistance or relief, which in various forms is provided in all countries, is merely the old poor law adapted to modern conditions.  The necessity of some such arrangement in an industrial country is unquestioned — be it only in the interest of those who require protection against acts of . . . → Read More: Hayek on Social Security 3

Hayek on Social Security 2

“In the Western world some provision for those threatened by the extremes of indigence or starvation due to circumstances beyond their control has long been accepted as a duty of the community.¹  The local arrangements which first supplied this need became inadequate when the growth of large cities and the increased mobility of men dissolved . . . → Read More: Hayek on Social Security 2

Hayek on Social Security 1

“The doctrine of the safety net, to catch those who fall, has been made meaningless by the doctrine of fair shares .. for those of us who are able to stand.”

– The Economist

Chapter head quotation from Ch. 19 “Social Security” of Hayek’s The Constitution of Liberty.

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Random Quote

I’m not mainly interested in explaining things which I know only from statistics. — F. A. Hayek

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