Fight of the Century: Keynes vs. Hayek Round Two

This is an entertaining video on YouTube about the two primary economic views battling each other currently … Keynes (top-down… British economic model) vs Hayek (bottom-up … Austrian economic model) …

These two views underlay the philosophical differences as to how to approach the economy here at home and abroad. The tension between each view is important in that the compromises between the two are that which provide balance. As with anything else, at different times and in different situations, either approach may provide a solution. The trick, and hence disagreement, is knowing when the time is and what the situation may call for?

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3 Responses to Fight of the Century: Keynes vs. Hayek Round Two

  1. Larry Frank, Sr. May 19, 2012 at 2:15 pm #

    From “Paper Promises” by Philip Coggan (future blog coming) page 263:
    “It was not until the Americans became debtors that they adopted Keynes’s view.” This is an interesting observation in that Keynes, as adopted and supported by the U.S., supports deficit spending (borrowing) to solve sluggish growth.

  2. Larry Frank, Sr. December 8, 2014 at 9:16 am #

    Some interesting thoughts and perspective about the historical context within which different economic thought developed …

    interview video of Milton Friedman on The Road to Serfdom by Hayek:


  1. Economics in One Lesson | Better Financial Education Blog - April 30, 2012

    […] Keynes vs Hayek blog points out the two main competing theories, in an entertaining way, that go back to the early 1900′s. It takes a long time to get enough […]

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