Friedrich_Hayek

Hayek's principal investigations in economics concerned capital, money, and the business cycle. Mises had earlier applied the concept of marginal utility to the value of money in his Theory of Money and Credit (1912), in which he also proposed an explanation for "industrial fluctuations" based on the ideas of the old British Currency School and of Swedish economist Knut Wicksell. Hayek used this body of work as a starting point for his own interpretation of the business cycle, elaborating what later became known as the "Austrian Theory of the Business Cycle". Hayek spelled out the Austrian approach in more detail in his book, published in 1929, an English translation of which appeared in 1933 as Monetary Theory and the Trade Cycle. There he argued for a monetary approach to the origins of the cycle. In his Prices and Production (1931), Hayek argued that the business cycle resulted from the central bank's inflationary credit expansion and its transmission over time, leading to a capital misallocation caused by the artificially low interest rates. Hayek claimed that "the past instability of the market economy is the consequence of the exclusion of the most important regulator of the market mechanism, money, from itself being regulated by the market process".

Question: __ shared his Nobel Prize with Gunnar Myrdal
Answer: Hayek

Question: Where did Hayek also come up for a reasoning for fluctuations?
Answer: Theory of Money and Credit

Question: What media did Hayek use to explain his theory?
Answer: book

Question: What did Hayek use for inspiration of his own for the cycle of business?
Answer: British Currency School and of Swedish economist Knut Wicksell

Question: How was the theory put into work?
Answer: Hayek spelled out the Austrian approach in more detail in his book, published in 1929, an English translation of which appeared in 1933 as Monetary Theory and the Trade Cycle

Question: Where did Hayek fight for his money?
Answer: Monetary Theory and the Trade Cycle

Question: Who published after Mises?
Answer: Hayek

Question: How did Hayek apply this to real life?
Answer: Hayek argued that the business cycle resulted from the central bank's inflationary credit expansion and its transmission over time, leading to a capital misallocation caused by the artificially low interest rates

Question: __ was a veteran of WWI
Answer: Hayek

Question: What lead to the bank not being able to handle it's funds?
Answer: artificially low interest rates

Question: How did the investigations differ?
Answer: Hayek's principal investigations in economics concerned capital, money, and the business cycle

Question: __ dfended classical liberalism
Answer: Hayek

Question: Whose ideas were not influenced by the old British Currency School?
Answer: Hayek

Question: What did Hayek think was unstable?
Answer: market economy

Question: When did Hayek make his principals more well known?
Answer: 1912

Question: Who published in 1912?
Answer: Mises

Question: How did the theory change?
Answer: he also proposed an explanation for "industrial fluctuations" based on the ideas of the old British Currency School

Question: What could be gleaned from the research?
Answer: Hayek claimed that "the past instability of the market economy is the consequence of the exclusion of the most important regulator of the market mechanism, money, from itself being regulated by the market process"