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by schuyler2d 603 days ago
Not in the article, but the body of work (that you're clearly familiar with).

If you believe the Fed/ability-of-the-Fed to smooth the boom/bust cycle, then you disagree with Hayek -- he wasn't (just) arguing for a generally free market -- he believed that all markets were perfect (especially/including the price value of Money).

It turned out Keynes was right.

1 comments

Yeah, it's related in that way. Fed or other central banks setting / controlling interest rates is definitely price control (interest is the price of money), and it is a form of central planning, or central intervention which makes price signals less pure.

I think it's "too soon" to say that Keynes was right. Afaik, Hayek predicted the Great Depression based on the Austrian business cycle theory. I think that ABCT is mostly right, but it's probably imperfect. There's so much going on in the real world that it's almost impossible to say whether a policy or a theory or whatever actually caused something or didn't cause, and what would have happened otherwise.