Topic Paper on Friedrich a Hayek
Friedrich A Hayek’s Economic Theories
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Friedrich A Hayek was a well renowned figure within the economics field in the course of 20th C. In the course of the final years of 1930s along with the early 1940s, it is evident that Hayek undertook elaborative research which mainly focused on the market processes’ discovery, as well as, knowledge. Hayek’s contributions within the economic field were basically the outgrowth of his committed participation in the probability of economic calculation within socialism debate. Hayek’s economic theories made him to be considered as the libertarian movement’s ‘elder-statesman’. Nevertheless, it is still debatable on whether the Hayek’s economic theories are of any essence within the economics field. One of the most predominant economic theories brought up by Hayek was the monetary theory. Hayek intertwined the monetary theory with the trade-cycle theory. Basically, the two aforementioned theories considerably dealt with money in relation to its impacts on prices. In brief terms, the monetary theory proposed by Hayek comprised of the integration of the money idea as the exchange medium with the assumption that the communication network was the price system. Hayek’s trade-cycle theory comprises of the integration of both the capital theory along with the monetary theory (Caldwell, 2004). The most emphasized factor within the trade-cycle theory is the inter-temporal prices system which is the distinct price system aspect. Within both the trade along with the monetary theories, Hayek’s argument was against the dominant idea that the right monetary theory focus is on money quantity and the general prices level relationship (Hayek et al, 1989). The facts expounded within the money quantity theory could not face opposition, although progress within monetary economics had to be made through shifting from the straightforward proportionalities brought up by the considerably stable
Name
Institution Affiliation
Friedrich A Hayek was a well renowned figure within the economics field in the course of 20th C. In the course of the final years of 1930s along with the early 1940s, it is evident that Hayek undertook elaborative research which mainly focused on the market processes’ discovery, as well as, knowledge. Hayek’s contributions within the economic field were basically the outgrowth of his committed participation in the probability of economic calculation within socialism debate. Hayek’s economic theories made him to be considered as the libertarian movement’s ‘elder-statesman’. Nevertheless, it is still debatable on whether the Hayek’s economic theories are of any essence within the economics field. One of the most predominant economic theories brought up by Hayek was the monetary theory. Hayek intertwined the monetary theory with the trade-cycle theory. Basically, the two aforementioned theories considerably dealt with money in relation to its impacts on prices. In brief terms, the monetary theory proposed by Hayek comprised of the integration of the money idea as the exchange medium with the assumption that the communication network was the price system. Hayek’s trade-cycle theory comprises of the integration of both the capital theory along with the monetary theory (Caldwell, 2004). The most emphasized factor within the trade-cycle theory is the inter-temporal prices system which is the distinct price system aspect. Within both the trade along with the monetary theories, Hayek’s argument was against the dominant idea that the right monetary theory focus is on money quantity and the general prices level relationship (Hayek et al, 1989). The facts expounded within the money quantity theory could not face opposition, although progress within monetary economics had to be made through shifting from the straightforward proportionalities brought up by the considerably stable
References: Caldwell, B. (2004). Hayek 's challenge: An intellectual biography of F.A. Hayek. Chicago: University of Chicago Press. Hayek, F.A . (1990). Denationalisation of Money. Chicago: University of Chicago Press. Hayek, F. A. (1941). The pure theory of capital. London: Macmillan and Co. Hayek, F. A. (2003). Individualism and economic order. Chicago: University of Chicago Press. Hayek, F. A., Klein, P. G., Bartley, W. W., Kresge, S., Wenar, L., Caldwell, B., & White, L. H. (1989). The collected works of F.A. Hayek. Chicago: University of Chicago Press.