Editorial Reviews. Review. Keynes Hayek: The Clash That Defined Modern Economics. Nicholas Wapshott. Norton, $ (p) ISBN Wapshott makes the case that Keynes, and not radical free marketeers like Hayek, are the real saviours of capitalism. The final quote, from John Kenneth. Nicholas Wapshott, author of Keynes Hayek: The Clash That Defined Modern Economics, talks with EconTalk host Russ Roberts about John.
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So he worked out–again, this is probably something you and I would recoil from–he actually tried to work out specifically what that that figure would be. Some of the ideas presented were not explained to the point that I was able to grasp them but some were well presented for my level of understanding. According to Keynes, the notion that the natural rate of interest is produced by an equilibrium between savings and investment is absurd.
Which showed an extraordinary honesty on Keynes’s part, because he was interested in getting to the bottom of things, the truth of things. Which other economist could get a personal invite from Roosevelt to see him at the White House or have just about every one of his articles from The Daily Mail and The Times published in serial form and later collected into best-selling works? And you recount many examples of the exhilaration many economists feel when they encountered these idea of Keynes’s, read the book for the first time.
Prove of this are the long eighty years of dispute. The first thing he said was to snap immediately: Basically the issue can be stated in these terms: Indeed, Wapshott believes one of the reason Keynes ended the duel with Hayek in the academic journals was because he had bigger fish to fry and was dealing with the burden of saving the world from mass unemployment — a task he assigned to himself and truly believed in accomplishing.
So, joblessness was what Keynes was worried about most of all.
There’s nothing to be ashamed of; it’s perhaps too hard. What kind of personal relationship did Keynes and Hayek have? He writes The General Theory and it is a bombshell.
Hence the inevitable pairing, in the other half of his book, of Hayek with John Maynard Keyneskeynfs the grounds that this was “the clash that defined modern economics”. My condensation of this condensed fare is that there is more to Keynes’s economics than portrayed by haydk and while Hayeks Road keynez Serfdom may fit in nicely with Glenn Beck’s paranoid world view, Hayek was not really at ease with what grew into the conservative movement, although he definitely wanted to privatize most every public service.
The greatest tragedy is that the Keynes vs Hayek battle presented the western world with a terrible dilemma in the s and early 80s — more inflation or unemployment. Almost nothing is discovered since nothing original is claimed.
I think right from the beginning it was like two stags locking horns. And it was very difficult to deal with.
A Hayek’s Nobel Laureate Address. Library of Economics and Liberty.
And we know from Friedrich Hayek, from movies of Friedrich Hayek, that even late in life his accent was very, very strong; and you have to listen very acutely in order to understand exactly what Hayek is saying. Keynes and Hayek both won the Nobel Prize in Economics.
Keynes Hayek: The Clash that Defined Modern Economics by Nicholas Wapshott
This statement reads like that of a Protestant heretic who wapshogt the Pope, only to insist on his own variant reading of Christian doctrine.
If you paid the butcher, the butcher would then pay the candlestick maker, and the candlestick maker would then buy something from the corner shop, and the corner shop would then buy something from the dry cleaner, and so on.
Or Hayek’s “The Arkansas” year. But he is thinking along interventionist lines long before that. They also wooed him.
You figure, well, I’ll write my own great book and it will answer it. It can be wqpshott the base of wapsohtt arguments. His words are not perfect; he’s not infallible. Ironically, some of the most interesting and obscure arguments between the two camps are to be found in Micro-Economics, although these will not be settled or understood in the public arena of politics.
And he realized that the Anglo-Saxon understanding of economics was missing an important dimension in Austrian economics. And that in combination with his accent; the fact that he had a bad cold keyhes the time; the fact that he had only just arrived in Britain–slightly confused maybe.
Keynes – Hayek by Nicholas Wapshott – review
The fact is you’re a decent sort of guy. Chris J Oct 25 at 2: Keynes would be King and Hayek unread. And wheter it can be established as a mechanism for solving economic crisis. I don’t have to answer it right now. Nothing to do with me, those two. Show 25 25 50 All. They would talk about book-buying in general; they would talk about their travels. David Oct 19 at I did not, however, follow Wapshott’s exposition of Austrian School theory in the first parts of the text, particularly as regards the debates about interest and savings.
But it’s really an anti-Keynesian argument. Why don’t I find you some rooms [? For example, the books shows how Milton Friedman was supportive of Hayek’s approach to the role of government, but was closer to Keynes in his actual economics.