In the recent history of economics: Who are the most significant economists? What are the most significant events? Which are the biggest theoretical and policy issues? Prime candidates are: John Maynard Keynes and Friedrich Hayek The New York Stock Exchange crash and the Great Depression Capital theory and problems of the money economy Keynes and Hayek inspired the economic controversy of the twentieth century: the role of the state, and of money and interest rates in an advanced capitalist industrial economy. In his work, Keynes points to high interest rates, low asset values and a negative...

John Maynard Keynes and Friedrich Hayek had serious differences of opinion when it came to assessing the fractured inter-war world. This work picks apart this debate and argues that Hayek's outlook will prove to be the more enduring.

In this updated and expanded edition, the author explores the broad features of Hayek's economic philosophy, shows the interrelationship between the liberal philosophy and economic advance, examines Hayek's approach to the problems of a money economy, and explains Hayek's aversion to all forms of centralized economic planning.