"For all his brilliance, Hayek didn’t — at the critical time — have a good enough understanding of the dangers of deflation. He didn’t fully realize the extent of sticky wages and prices and, more deeply, he didn’t see that ongoing deflation would render the “calculation problem” of a market economy more difficult. Hayek stressed that a market calculates value in a way that a central planner cannot — but lying behind this ability to calculate is some basic macroeconomic stability. At the key moments, Hayek did not offer the proper recipe for that stability."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Tyler Cowen, "The Eternal Struggle", National Review (2011)
https://en.wikiquote.org/wiki/Prices_and_Production
Revision History
No revisions have been submitted for this quote.
Categories
Prices and Production
Prices and Production is a 1931 book written by Friedrich Hayek. In 1935, It was revised.
25 quotes on TrueQuotesView all quotes by Prices and Production →
Related Quotes
"I will be discussing what happened in economics in England, but these were times when, to a very considerable extent,…"
"Hayek's point was that, in the short run, increase in the demand for consumer goods can redirect production from long…"
"Let me emphasize, I am an enormous admirer of Hayek, but not for his economics. I think Prices and Production is a ve…"
""I can date my own personal 'revolution' rather exactly to May or June 1933. It was like this. It began … with Hayek.…"
"I remember Robbins asking me if I could turn the Hayek model into mathematics … it began to dawn on me that … the mod…"
"It was from Hayek that I began."
"It is not so well known that it [Keynes's and my own move from thinking in terms of price-levels and the rate of inte…"
"Hayek was making us think of the productive process as a process in time, inputs coming before outputs."
"I did not begin from Keynes: I began from Pareto, and Hayek (footnote 10: There is evidence for this, in the paper 'E…"
"While the more naive forms of inflationism are sufficiently discredited today not to do much harm in the near future,…"