Our Costly Dalliance With Lord Keynes

In “The General Theory of Employment, Interest and Money”, Keynes virtually created macroeconomics. But Keynes was a mathematician, not an economist, and did not fully understand free markets, so he was hardly qualified to emerge as the most influential economist of the last century. His misconceptions still inform the establishment, comprising governments and their regulated financial sectors. Given that there is dawning acknowledgement that these policies are propelling leading nations into a common financial and economic crisis, a forensic dissection of Keynes’s errors and motivations is overdue. This essay is a brief attempt to rectify this omission.

Hayek’s assessment of Keynes

Perhaps we should have listened to Friedrich Hayek, when he said that his friend Lord Keynes was not an economist. This description of Keynes by Hayek is extracted from a video interview with Leo Rosten in 1975:

“He was a man with a great many ideas who knew very little about economics. He knew nothing but Marshallian economics. He was completely unaware of what was going on elsewhere. He even knew very little about nineteenth century economic history. His interests were very largely guided by aesthetic appeal, and he hated the nineteenth century and therefore knew very little about it, even about its scientific literature.”

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New Project Makes Theories and Writings of Legendary F.A. Hayek Accessible to New Audiences

By Donald Boudreaux & Jason Clemens – Re-Blogged From the Fraser Institute

A new book, supported by a website and animated videos, makes the ideas of Nobel laureate economist F.A. Hayek easily accessible for a new generation.

Published by the Fraser Institute, the Essential Hayek book and website are being released five years after Hayek’s classic 1944 book, The Road to Serfdom, unexpectedly rose to Number 1 on the Amazon best-seller list.

Hayek, who died in 1992, has long been considered one of the most influential thinkers of the 20th century and his work still resonates with economists and scholars around the world today.

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