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Hayek and Keynes
Posted By Don Boudreaux On March 17, 2009 @ 1:51 pm In Complexity & Emergence,Economics,State of Macro | Comments Disabled
I’ve spent much time lately re-reading Hayek’s and Keynes’s works from the 1930s — reading not as systematically as I would like, but diving into these works with an interest and fervor that I’ve not felt since the early 1980s. I highly recommend Bruce Caldwell’s splendid “Introduction” to volume 9 of Hayek’s Collected Works — a volume entitled “Contra Keynes and Cambridge. ” Also, I highlight this important passage from one of Hayek’s essays contained in the just-mentioned volume, “Personal Recollections of Keynes.”
The notion that all unemployed resources of a certain aggregate class such as “labor” or “land” or “steel mills” are largely identical and interchangeable with other resources in that same class, and, hence, can be easily and profitably employed simply by increasing demands for “labor” or “land” or “steel mills,” is the bastard off-spring of lazily thinking in terms of aggregates and forgetting the enormous complexities that are part and parcel of any successful, viable, market economy.
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 Collected Works — a volume entitled “Contra Keynes and Cambridge.: http://www.amazon.com/s/ref=nb_ss_gw_0_21?url=search-alias%3Dstripbooks&field-keywords=contra+keynes+and+cambridge+essays+correspondence&sprefix=contra+Keynes+and+cam
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