Hayeks Contribution to the Business Cycle Essay examples -- essays pap

Hayeks region to the origin Cycle Friedirch r atomic number 18fied von Hayek was born in cap of Austria on May 8, 1899 and died on border 23, 1992, in the city of Freiburg in Breisgan in Germany. Hayek was a central formula in 20th-century stintings and he represented the Austrian tradition. After Hayek served military service, he became a student at the University of Vienna where he got his doctors degree in law and political science. In 1923-4, Hayek visited New York and then returned to Vienna where he continued his work. Hayek became the first director of the Austrian Institute for Business Cycle Research in 1927. He also gave some lectures in England at the London School of Economics in 1931. In England, he participated in such debates as fiscal, capital, and business-cycle theories during the 1930s. Hayeks contributions were very important. To describe, business cycles, one has to project the historical record of a nations overall economic performance. It is a imitate of long-term growth marked by alternations of expansion and contradiction. These recurrent alternations to a higher place and below the long-term trend are business cycles (Outhwaite, 55). The term economic fluctuations is used to describe the same phenomena. Economists have distinguished many obtain of the business cycle. There are some factors outside the economic outline and those within it. Outside causes such as war and major inventions are referred to exogenous factors. Whereas endogenous factors belong to the internal working of the economy itself and its propensity to fluctuate over extended periods (Outhwaite, 56). Before World War II, the speech pattern was put on endogenous factors, and thus theories such as monetary overinvestment underconsumption psychological were more important than others. In general, all cycle theories select some kind of cost maladjustment. F. A. Hayek was one of the many economists who, indeed, explained overinvestment theor y in a monetary sense. Overinvestment theory is related to the overproduction-type theories. Those theories include consumer goods, capital goods, or investment of money or credit. They may stress fixed capital against circulating or liquid capital (Haney, 667). However, the overinvestment theory assigned a crucial role to the acceleration principle, according to which a mere chastise in the rate of increase in business sales could gi... ...Butler, Eamonn. Hayek His Contribution to the Political and Economic Thought of Our Time. USA Universe Books, 1985. 8-10.Colonna, M., Hagemann, H., and Hamouda, O. Economics of F.A. Hayek. (Vol.2, pp xii- xiii). Edward Eglar create Limited. England. 1994.Haney, Lewis H. History of Economic Thought. New York The Macmillan Company, 1949. 667-84.ODriscoll, Gerald P., Jr. Economics as a Coordination Problem The Contributions of Friedrich A. Hayek. Kansas City Sheed Andrews and Mcmeel, Inc. 1977. 9-11.Outhwaite, William and Tom Bottomore. The Black well Dictionary of Twentieth-Century Social Thought. Oxford Blackwell Publishers, 1993. 55-57.Palgrave, Robert get at Inglis. Friedrich August von Hayek. The New Palgrave A Dictionary of Economics. (Vol. 2, pp. 609-10). The Macmillan Press Limited. USA. C 1987.Palgrave, Robert raise Inglis. Ricardo-Hayek effect. The New Palgrave A Dictionary of Economics. (Vol. 4, pp. 198-99). The Macmillan Press Limited. USA. C 1987.Spiegel, Henry. The reaping of Economic Thought. New Jersey Prentice-Hall, Inc., 1971. 543-44.Tomlinson, Jim. Hayek and the Market. London Pluto Press. 1990. 5-6.