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Hayek and Contemporary Macroeconomics

ISBN: 978-1-78560-988-6, eISBN: 978-1-78560-987-9

Publication date: 30 November 2016

Abstract

F. A. Hayek’s macroeconomic theory and policy ideas have gained renewed attention since the cheap-money boom until 2007, and subsequent bust, followed the basic Hayekian narrative. Only to a very limited extent, however, do we find Hayek’s ideas on the agenda of mainstream macroeconomic researchers since Robert Lucas’s research program gave way to “Neoclassical” and “New Keynesian” DSGE models. We find examples of deeper interest on the periphery of the mainstream. Hayek’s influence on today’s macroeconomic policy discussions remains similarly limited, although he has become an icon to some opponents of loose monetary policy.

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Acknowledgements

Acknowledgments

I thank Patrick Newman and Scott Burns for research assistance, and participants at the Symposium on Current Hayekian Scholarship, Mercatus Center, October 2014, for discussion. Thanks to Pablo Prieto and Geoff Smith for comments on an earlier draft.

Citation

White, L.H. (2016), "Hayek and Contemporary Macroeconomics", Revisiting Hayek’s Political Economy (Advances in Austrian Economics, Vol. 21), Emerald Group Publishing Limited, Leeds, pp. 41-61. https://doi.org/10.1108/S1529-213420160000021010

Publisher

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Emerald Group Publishing Limited