“Deflation .. Prolonged The Depression” — New Friedrich Hayek Interview

Now in English: Conversations with Great Economists:  Friedrich A. Hayek, John Hicks, Nicholas Kaldor, Leonid V. Kantorovich, Joan Robinson, Paul A.Samuelson, Jan Tinbergen by Diego Pizano.

Originally published in Spanish as Dialogos Con Economistas Eminenes, (Mexico) Fondo de Cultura Economica, 1980.  Preview the book at Google Books here.  Buy the book from Amazon here.

The interview is among the most substantive conversations with Hayek I’ve seen.  Quotable:

“I agree with Milton Friedman that once the Crash had occurred, the Federal Reserve System pursued a silly deflationary policy.  I am not only against inflation but I am also against deflation.  So, once again, a badly programmed monetary policy prolonged the depression.”

The interview is from July, 1979.

UPDATE — NYU economist Mario Rizzo comments:

So now we have not only the logic of Hayekian economics (both micro and macro) and the words of the man himself that deflation (of the increase in the relative demand to hold variety) should be avoided. I claim infallibly that this is the Hayekian position. We can argue about whether he was right but we cannot profitably argue about whether this was his position. QED.

This entry was posted in Deflation, Great Depression, Hayek Studies, Interview, Milton Friedman. Bookmark the permalink.

2 Responses to “Deflation .. Prolonged The Depression” — New Friedrich Hayek Interview

  1. Pingback: Hayek coincide con Friedman sobre la Gran Depresión « Procesos de aprendizaje

  2. etan says:

    You always pass failure on the way to success.

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