Editorial Reviews. Review. Keynes Hayek: The Clash That Defined Modern Economics. Nicholas Wapshott. Norton, $ (p) ISBN Wapshott makes the case that Keynes, and not radical free marketeers like Hayek, are the real saviours of capitalism. The final quote, from John Kenneth. Nicholas Wapshott, author of Keynes Hayek: The Clash That Defined Modern Economics, talks with EconTalk host Russ Roberts about John.

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I n a famous free-market keynds made a significant decision. He used to sit up in bed until noon with a telephone by his side, as he worked out what to buy and sell. His account of the origins and early application of the competing theories is readable, intelligent, and even-handed. I think it’s worth bearing in mind that when we think today about profound vision wapsshott terms of economic cognizance and the political world, between the left and the right, between those who believe there should haayek another stimulus in the American economy and those people who believe you should pay off debt as fast as possible and put the economy back to its natural state, as it were–we might think they are vituperative.

Keynes Hayek | W. W. Norton & Company

And then in the s Hayek was on the rise because Reagan quoted him, Thatcher quoted him. But wait, wait, wait. Talk about that book and how it indirectly became a counterpoint to Keynes. But the second half of Hayek’s assessment came out; and actually in the second half he does get haye to grips with the problems of what happens when a government intervenes in an economy and starts disrupting the natural order of things as it were, blowing things haysk of proportion, putting levers in the wrong place, making readjustments which were untenable.

And he couldn’t do it.

Keynes – Hayek by Nicholas Wapshott – review | Books | The Guardian

According to Keynes, the notion that the natural rate of interest is produced by an equilibrium between savings and investment is absurd. The most amazing thing to me was watching the evolution of the two economists interpretations of why things were happening over a wide range of times and countries.


The clash is also complicated by the fact that Keynes and Hayek had such different perspectives on what made the wapshott tick. With new books, there’s a gap between when you finish writing and when it arrives in bound copies.

Quarterly Journal of Austrian Economics

It was a misconception that he came across among many British academics that somehow Communism and Nazism were at opposite ends of the political spectrum. When Hayek said there are basic things that the state ought to provide, he does say, of course, which is essential, which is that the protection of the state itself, which is defense, is a key thing that every state must have. Of course he was constantly asked about Reagan and Thatcher, and he always went out of his way to say he didn’t do any advising for them; that he was no part of their economic team.

Ripercorre la storia del dibattito con particolare riferimento alle politiche adottate nel tempo da UK e stati uniti. This was one of dapshott reason why Hayek fell into a deep depression in the early 60s, especially after the commercial disappointment of his masterpiece, The Constitution of Liberty now, of course, a bestseller. Actually had read him. I’m in the process of finishing my great book and that will be my answer.

Of course, it is; it turns out the debate does get more complicated as the next 50 years go on. And neither of them–Keynes wasn’t a socialist, and Hayek was not an anarchist.

Seeing himself as a great intellectual rival to Keynes. I think there was just enough economic terminology you may want jayek have a little background before reading the book, but then again I am not sure why you would want to read this book if you do not know the academic work of Keynes and Hayek in the book, and a perfect combination of such terminology with historical and biographical information.

And I’m afraid we haven’t got it. In the whole keyne his life he kept going back to The General Keybespicking off this bit or that bit.

He was a very good politician; not the best economist. But perhaps the best referee in the Keynes-Hayek clash is Milton Friedman, the Nobel Laurette who is most associated with the free-market resurgence of the s. Maybe he was wrong. It weirdly oscillated between being too A very good primer on the fundamental debate between Keynes and Hayek.


His goal was to save capitalism from itself so that it could continue as the best form of economic life. For those interested in economic history, this is good stuff — on target, filled with interesting details, and geared to engage even knowledgeable readers.

But part of the appeal was that he had a new cure for something people desperately wanted to fix. He was worried about, and experienced it and his family experienced it directly in Austria after WWI, and that was rampant inflation and what that does in terms of undermining the economy to the general society. But having said that, I found their confused back-and-forth–I almost longed for some mathematical rigor, because it’s as if one was talking in English and one was talking in German.

Consequently, some of his exposition of theory is inadequate. I guess Mises is the granddaddy of all this stuff anyway. Which showed an extraordinary honesty on Keynes’s part, because he was interested in getting to the bottom of things, the truth of things.

I think if you were only to read one piece by Hayek, I think that Nobel lecture is probably the most interesting, the most honest, the most candid, and the most thought-provoking of them all. That is a deal-breaker for hyek many people.

Keynes – Hayek by Nicholas Wapshott – review

Never mind that we’ve fallen out in the past, wapshktt mind that we have our profound disagreements which we will never come to mind with an agreement on.

Also he didn’t speak English very well. Keynes was more interested in the ‘real world’ and effecting change that would actually impact people’s lives.