Friedrich Von Hayek

By:   Date: 4 December 2009

About The Author

 

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The 1974 Economics Nobel Laureate Friedrich Von Hayek (1889-1992) was among the most perceptive, knowledgeable and masterly economists and a renowned Austria-born British political philosopher of the 20th century. His works comprise defending the theories of Classical Liberalism and free-market capitalism against the existing collectivist and socialist beliefs.

Personal and career profiles:

A 1899 Vienna-born aristocrat, Friedrich Von Hayek celebrated his birthday on the 8th of May. His academic carer virtually started after his retirement from the Austro-Hungarian army. He earned his doctorate degree in political science and law from the University of Vienna in 1921 and 1923 respectively, after which he pursued careers in economics and psychology. However, economic thoughts evolved within him in his student life. Between 1923 to 1924, he joined Prof. Jeremiah Jenks as a research assistant in the New York University. Later, he was appointed as the Director of the Austrian Institute for Business Cycle Research. Ultimately, he became a faculty of the London School of Economics in 1931.

Theories propounded:

  • Spontaneous Order: According to Hayek, the market prices should be fixed by the individuals operating there, without government's interference into it. The process of fixing the market prices should be a natural and spontaneous process, and not in an abrupt calculated, forced or planned method.
  • The Economic Calculation Problem: Criticizing the Theory of Economic Calculation Problem propounded by Ludwig von Mises, Friedrich August Von Hayek opined that without knowing the existing market price, the logical or rational allocation of resources is not possible. He emphasized on decentralization of the economy and advocated free-market economy, to give preference to individual interests and bring about social welfare. According to Hayek's theory, there should be minimum intervention of the central government in course of allocation of resources. The term 'Catallaxy' was coined by Hayek to describe “self-organizing system of voluntary co-operation”. The governmental powers should remain confined to maintaining the rule of law, with least possible interventions.

Publications:

  • Investment that Raises the Demand for Capital (1937)
  • The Pure Theory of Capital (1941)
  • The Ricardo Effect (1942)
  • The Road to Serfdom (1944)
  • A Commodity Reserve Currency (1943)
  • Money, Capital and Fluctuations: Early essays (1984)
  • The Fatal Conceit: Or the errors of socialism 1988)
  • Toward a Free-Market Monetary System (1979)
  • Price Expectations, Monetary Disturbances and Malinvestments (1935)
  • Economics and Knowledge (1937)
  • The Facts of Social Sciences (1943)
  • Individualism and Economic Order (1948)

Books by Friedrich Von Hayek

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