Hayek and Contemporary Macroeconomics

28 Pages Posted: 22 Jan 2015

See all articles by Lawrence H. White

Lawrence H. White

George Mason University - Department of Economics

Date Written: January 20, 2015

Abstract

F. A. Hayek’s macroeconomic theory and policy ideas have gained renewed attention since the recent boom-and-bust cycle followed the basic Hayekian narrative of an unsustainable cheap- money boom ending with a crash. 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.

Keywords: F. A. Hayek, business cycle, boom, bust, macroeconomics, Robert Lucas, DSGE models, monetary policy

JEL Classification: B2, B53, E3, E6

Suggested Citation

White, Lawrence H., Hayek and Contemporary Macroeconomics (January 20, 2015). GMU Working Paper in Economics No. 15-05. Available at SSRN: https://ssrn.com/abstract=2553031 or http://dx.doi.org/10.2139/ssrn.2553031

Lawrence H. White (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

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