The present paper deals with Friedrich August von Hayek, one of the prominent liberal thinkers of the twentieth century. He engaged himself actively in economy, political philosophy, psychology, and epistemology. The Royal Swedish Academy of Sciences awarded Professor Hayek the Prize in Economic Science in Memory of Alfred Nobel for 1974 together with Professor Gunnar Myrdal �for their pioneering work in the theory of money and economic fluctuations and for their penetrating analysis of the interdependence of economic, social and institutional phenomena�1. But his contribution does not limit only to economic.
Hayek developed his seminal explanation of business cycle based on classical macroeconomic theories of Knuth Wicksell and Ludwig von Mises. Theirs ideas are briefly presented in the first part of Chapter I. Further it will be discussed the essence of the theory of business cycle in terms of production structure and capital employment. In particular, the model demonstrates that boom-bust cycles are caused not by mysterious defects inherent in industrial capitalism, but by the unfortunate inflationary bank credit expansion propelled by central banks. Next section presents Hayek�s ideas about the role of money in economy and intelligent monetary policy. The problem of price system in market economy, linking Hayeks economic and political articles and books is elaborated in section four of Chapter I. Critical remarks to his statements voiced by his adversaries and fellows are discussed directly in the main text. The rationale for such structure is to alleviate understanding of the subject.
In the next chapter one gets on overview of The Road to Serfdom, the book by which Professor Hayek deserved popularity from both sides of Atlantic. It linked the statism of communism, social democracy, and fascism, and demonstrated that, just as people who are best suited for any given occupations will rise to the top in those pursuits, so under statism, "the worst" would inevitably rise to the top. The attention is paid to the critical issues like alleged advantages of central planning and market economy, the idea of a unity of liberal tradition, and Hayek�s view of post-war international order. The chapter includes statements from his debates with socialists. The paper refers heavily to Hayek�s works like Monetary Theory and Trade Cycle (1929), Prices and Production (1931), The Use of Knowledge in Society (1945), The Road to Serfdom (1944).
Inhaltsverzeichnis (Table of Contents)
- CHAPTER I. HAYEK'S CONTRIBUTION TO ECONOMICS
- 1.1. MACROECONOMIC INTRODUCTION.
- 1.2. HAYEK'S INTERPRETATION OF BUSINESS CYCLE
- 1.3. MONETARY POLICY.
- 1.4. THE PRICE SYSTEM.
- CHAPTER II. HAYEK'S CONTRIBUTION TO POLITIC AND LIBERALISM.
- 2.1. THE IDEA OF A UNITY OF LIBERAL TRADITION.
- 2.2. PLANNING AS AN ECONOMY COORDINATION MECHANISM.
- 2.3. THE THREAT OF MONOPOLIES.
- 2.4. THE FATE OF DEMOCRACY IN A SOCIALIST STATE
- 2.5. FUNDAMENTALS OF TOTALITARIANISM.
- 2.6. INTERNATIONAL ASPECT
- CONCLUSIONS
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to examine the contributions of Friedrich August von Hayek, a prominent liberal thinker of the 20th century, to economics and politics. It explores his engagement with various fields, including economics, political philosophy, psychology, and epistemology. The paper delves into Hayek's influential work, focusing on his seminal explanation of business cycles and his insights on the role of the market and the dangers of central planning.
- Hayek's economic theory, particularly his business cycle model, and its connection to the works of Knut Wicksell and Ludwig von Mises.
- The role of monetary policy and its potential consequences for economic stability.
- The importance of the price system as a coordination mechanism in a market economy and its relevance to Hayek's political philosophy.
- The critical analysis of central planning and the arguments against statism presented in Hayek's "The Road to Serfdom."
- Hayek's understanding of the dangers of totalitarianism and his views on the international political order.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter I focuses on Hayek's contribution to economics, specifically exploring his theory of business cycles. It delves into his interpretation of business cycles in terms of production structure and capital employment, highlighting how boom-bust cycles are caused by inflationary bank credit expansion. The chapter further discusses Hayek's views on monetary policy and the importance of the price system in a market economy, critically examining various arguments for and against his theories.
Chapter II shifts attention to Hayek's contributions to political philosophy and liberalism, with a focus on his seminal work, "The Road to Serfdom." The chapter analyzes Hayek's critique of central planning and statism, exploring the alleged advantages of the market economy and the potential dangers of centralized decision-making. It also examines Hayek's ideas on the unity of liberal tradition and his views on the international political order in the post-war era.
Schlüsselwörter (Keywords)
Key concepts and terms explored in this paper include liberal economics, Austrian School, business cycles, monetary policy, price system, central planning, statism, totalitarianism, market economy, and "The Road to Serfdom."
- Quote paper
- Dipl.-Kfm Roman Hinka (Author), 2005, Hayek as a liberal - His contribution to politics and economic, Munich, GRIN Verlag, https://www.grin.com/document/38109
