Let’s Talk Some Monetary Theory and the Trade Cycle

“For the graduate students, my focus is both to communicate the basic idea (and research puzzles) of how to study intertemporal coordination. I have asked them to think about the relationship between Hayek’s 1928 paper on price equilibrium and movements in the value of money, his 1933 paper on price expectations, monetary disturbances and malinvestments, and his 1939 paper on profits, interest and investment in light of the Keynesian avalanche. I am looking at reasons internal to Hayek’s own presentation that caused the unusual circumstances that in 1931 everyone was a Hayekian at LSE to nobody remaining a Hayekian at LSE by 1939 (nobody is not quite accurate because Hayek and Lachmann remained). What in the presentation of the theory itself could fail to persuade and thus requires repair?” Read more.

 

Peter Boettke

Coordination Problem Blog, October 18, 2009.