Hayek and Contemporary Macroeconomics
28 Pages Posted: 22 Jan 2015
Date Written: January 20, 2015
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: Suggested Citation